Furiex Pharma target raised to $137 at Ladenburg after positive data

|About: Furiex Pharmaceuticals, Inc. (FURX)|By:, SA News Editor

Ladenburg Thalmann hikes its price target for Furiex Pharmaceuticals (FURX +127.8%) to $137 from $57 after the drug developer's Eluxadoline experimental drug to treat a form of irritable bowel syndrome met main goals in a late-stage study.

Alogliptin, now approved in the U.S., Japan and Europe, represents another valuable asset, the firm says, expecting U.S. and E.U. revenues will start to impact the level of royalty revenues FURX receives during 2014; the company is entitled to tiered royalties of 8%-12% and 4%-8% in the U.S. and Europe/Japan, respectively (Briefing.com).

Mizuho does not consider positive data yesterday for FURX as a negative for Salix Pharma's (SLXP +2.5%) Xifaxan; a large population means room for two products, and different MOA and response rates mean variable patient responses, it says.