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Canaccord ups AEterna price target

|Includes:AEterna Zentaris, Inc. (AEZS)

May 14, 2010 by leonardzehr · Leave a Comment 

Canaccord Genuity has raised its price target on “speculative buy-rated” AEterna Zentaris (AEZS 1.86 ↓6.06%)(NASDAQ:AEZS; TSX:AEZ (1.92 ↓2.04%)) to $2.60 (U.S.) from $1.65 after updating its valuation to include the colorectal cancer indication for the company’s perifosine drug.

In a new report, analyst Neil Maruoka says he figures perifosine will have peak revenues of $400 million treating colorectal cancer and gives the drug a 55% probability of clinical success.  That’s the same probability that he projects for perifosine’s multiple myeloma indication.

The drug has advanced into Phase 3 studies in multiple myeloma and colorectal cancer, and “we believe that results from these studies will be major drivers for the stock,” he added. 

Disclosure: No positions
Stocks: AEZS