A different view on the likelihood of imminent CRME takeover.
Cardiome Faces "Exciting Times" In Near Term: Natl Bk >CRME
DOW JONES NEWSWIRES
December 3, 2007 2:34 p.m.
TORONTO (Dow Jones)--Pending developments could make for "exciting times" at Cardiome Pharma Corp. (CRME) in the coming months, National Bank Financial said in initiating coverage of the pharmaceutical company Monday.
In a research report, analyst Prakash Gowd said the intravenous formulation of the company's lead product, vernakalant, will face a Food and Drug Administration advisory panel on Dec. 11.
Vernakalant is a late-stage product for the treatment of atrial fibrillation.
A Prescription Drug User Fee Act, or PDUFA, date is set for Jan. 19, he said.
The company is also expected to release Phase IIb data for an oral formulation of vernakalant in March.
Gowd said the significant probability of a positive outcome from the FDA panel hearing is already priced into the stock, adding that he believes clinical trials have demonstrated that the drug is as efficacious as current anti-arrhythmic drugs.
He rates the stock at sector perform with C$10 target.
The analyst said that, while there are expectations on the Street for an acquisition of Cardiome, he doesn't believe such an outcome is imminent.
He said that, with the intravenous formulation of vernakalant already partnered with Astellas Pharma Inc. (4503.TO) in North America and the oral formulation only in Phase IIb clinical testing, an acquisition of Cardiome at an attractive price is unlikely in the near term.
Astellas isn't a likely acquirer, because it already has access to the intravenous formulation and is unlikely to be interested in the oral formulation given its focus on hospital products. Other companies would prefer to have both oral and intravenous formulations if they were to acquire Cardiome, he said.
Strong Phase IIb oral data could change this outlook, he noted.
Cardiome is down 96 Canadian cents to C$9.13 in Toronto Monday.
National Bank doesn't have an investment-banking relationship with Cardiome, and it and its affiliates hold less than 1% of the Vancouver company.
Company Web site: cardiome.com |
