Friday, October 31, 2014

Roth ups Discovery Labs price target

March 7, 2012 by · Leave a Comment 

Roth Capital Partners has raised its price target on “buy-rated” Discovery Laboratories (NASDAQ:DSCO) to $10 from $6 after the FDA approved its synthetic surfactant, Surfaxin, for administration to premature infants for the prevention of respiratory distress syndrome.

“Discovery has not yet committed to building its own sales force, thus, we believe partnering the asset or selling the company outright are viable options,” writes analyst David Moskowitz, who adds that U.S. approval of Surfaxin is a “major value creating event for Discovery shareholders.”

The Surfaxin treatment is expected to launch later this year, and the “risks associated with non-U.S. approval and advancement of the company’s aerosolized surfactant candidate, Aerosurf, are also lowered by the event,” he added.

He figures Surfaxin’s initial formulation could take 40% share of the current infant respiratory distress syndrome market in the U.S. by 2016.  Other formulations and line extensions of the technology “offer blockbuster potential and could attract suitors,” he added.

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