First Security Van Kasper Initiating Coverage on Trega Biosciences, Inc. With Buy Rating
SAN FRANCISCO, June 2 /PRNewswire/ -- The following is being issued by First Security Van Kasper, a member of the National Association of Securities Dealers, CRD number 7665:
Bud Leedom, General Industries analyst at FS Van Kasper, has initiated coverage on Trega Biosciences, Inc. (Nasdaq: TRGA) ($2 9/16) with a Buy rating and a 12-month price target of $5.
Below are direct quotations from Mr. Leedom's research report:
-- We are initiating coverage on Trega Biosciences, inc. with a Strong Buy rating and a 12-month price target of $5.00.
-- Trega is making a key transition from cash intensive drug development to advanced products used in drug discovery. We believe that the resulting company will emerge as one of the leaders in drug discovery services and warrant a market valuation more in line with HTS (high-throughput screening) companies.
-- The revolution in genomics has led to the identification of significant numbers of potential drug targets, increasing the demand for compound libraries. We believe that this demand will significantly increase chemical library valuations over the coming future.
-- Trega is focused on becoming a "one-stop shop" in the drug discovery process by offering products and services that accelerate lead optimization. Trega's newly launched iDiscovery assists companies in identifying and synthesizing compounds for potential drug candidates, in addition to providing drug selection services based on predictive modeling.
-- The IDEA (In Vitro Determination for the Estimation of ADME) predictive modeling segment of Trega's iDiscovery addresses a key bottleneck in the drug selection process.
-- The company is taking substantial risk out of its stock by exiting the drug development business. We believe that Trega will be able to terminate or redeploy costly R&D expenditures and eliminate FDA approval risk associated with the drug development process.
-- Trega purchased 20% of B2B e-commerce compound solution company ChemNavigator.com to acquire an Internet outlet as well as an additional market for its Chem.Folio combinatorial libraries.
-- The company has transformed its management into a strong team of experienced professionals led by former BioChem Therapeutic president Michael Grey. The majority of senior management has been recruited within the past year and a half. We believe that new management will be instrumental to the successful transition of Trega and is a key investment attribute of the company.
First Security Van Kasper makes a market in the shares of Trega Biosciences, Inc. and has managed an offering of this company's stock within the past three years.
First Security(R) Van Kasper is a private brokerage and investment banking firm. Since its founding in 1978 as Van Kasper & Company, the firm has been providing exceptional services and original investment advice to a select group of investors and businesses. The firm's offices are located in San Francisco, Fresno, Los Angeles, San Diego, Newport Beach, San Jose, Sacramento, and Walnut Creek, California, as well as Phoenix, Arizona and New York City, New York.
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The study on these pages is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed herein reflect the judgment of the author at this date and are subject to change without notice. Facts have been obtained from sources considered reliable, but are not guaranteed. First Security Van Kasper, its directors and employees and their families may have a position in the securities of the companies described herein, and may make purchases or sales while this report is in circulation. Additional information is available upon request.
SOURCE First Security Van Kasper
CO: First Security Van Kasper; Trega Biosciences, Inc.
ST: California
IN: FIN BIO
SU: RTG
06/02/2000 11:14 EDT prnewswire.com |
