BioCryst shares rise on outlook for new products

posted: 45 DAYS 5 HOURS AGO

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NEW YORK -Shares of BioCryst Pharmaceuticals Inc. jumped Tuesday after a JMP Securities analyst initiated coverage with an "Outperform" rating, citing revenue potential for the company's flu treatment peramivir and cancer drug forodesine.

BioCryst shares rose 60 cents, or 7.2 percent, to $8.91 in afternoon trading. Shares have traded between 85 cents and $13.47 over the past 52 weeks.

JMP analyst Charles C. Duncan gave the shares an "Outperform" rating and expects shares to reach $15 apiece over the next 12 months as the biotechnology company shifts into a revenue-producing operation.

"We anticipate a share price inflection point with the company's transition into a revenue-driven biotech over the next 12 to 24 months as it develops and markets lead drugs peramivir and forodesine."

In September, the company said it would start two late-stage studies on the intravenous flu treatment peramivir. Meanwhile, it is also developing forodesine as a cancer treatment.

"Based on our diligence, we believe that the market potential is great and the risk of completing clinical development is lower for peramivir relative to current expectations," Duncan said.

He also said the company could see better-than-expected revenue from emergency-use contracts for peramivir.

2009-10-13 13:37:12