Rigel Pharma (NASDAQ:RIGL) has been a investment for the Growth Portfolio for several months now. It's started to get some interest not that it's Arthritis drug is nearing the end of Phase II trials. This drug has blockbuster potential so it's amazing how cheap the stock got back earlier this year. Its also just about unheard of to see a price target suggesting a 230% gain and the stock only jumps 5%.
The following information about the upgrade from Rodman & Renshaw was posted here.
- Rodman & Renshaw analyst Simos Simeonidis gave the stock an "Outperform" rating and expects shares to reach $33 over the next 12 months as the drug candidate R788 advances through development. It is currently in midstage clinical trials, with study data expected in July.
- The drug candidate has the potential to "become a significant player" in the rheumatoid arthritis market, he said, in a note to investors, citing its effectiveness so far in trials and oral administration. He expects upcoming data in July to be positive, reinforcing the view that R788 is approvable and could take significant market share away from injectable drugs.
- R788 would enter a market against several entrenched treatments for the condition, including Biogen Idec Inc. and Genentech's Rituxan and Amgen's Enbrel, both of which are injections.
- A partnership for R788 is likely the next major catalyst for Rigel, Simeonidis said. Potential partners would likely prefer to wait until after the an FDA meeting before making a decision, he added, and expects a deal to occur in the fourth quarter or early in 2010.