Curagen Up; Piper Upgrades On Multiple Myeloma Drug
NEW YORK -(Dow Jones)- Shares of CuraGen Corp. (CRGN) rose 15% Monday after Piper Jaffray raised its rating to outperform from market perform, citing the potential of two new products.
Piper also increased its 12-month price target to $6.50 a share from $6.10, and raised its 2006 target revenue estimate to $36.7 million. The company expects 2006 revenue between $35 million to $38 million. In 2005, CuraGen posted revenue of $23.5 million.
Piper Jaffray based its upgrade on the potential of PXD101, which can "enhance current standard care" of multiple myeloma, as well as 454 LifeSciences' Genome Sequencer, which was launched in October.
According to CuraGen, PXD101 is in Phase II clinical trials testing its treatment of multiple myeloma, cutaneous T-cell lymphoma and other T-cell non-Hodgkin's lymphomas. Results from the trial should be released in mid-2006. PXD101 is also being evaluated for treatment of solid tumors.
Piper analyst Edward Tenthoff said he's interested in the potential of PXD101 in treating multiple myeloma in combination with Millennium Pharmaceuticals Inc.'s (MLNM) drug Velcade, which is being co-developed by Johnson & Johnson Inc. (JNJ).
Velcade clears protein blockages in cell pathways. When protein accumulate in a cell, apoptosis, or cell death, occurs. Piper believes using PXD101 and Velcade will result in higher rates of responses to the drug.
454 LifeSciences, which is 66% owned by CuraGen, recently launched the Genome Sequencer 20 system with Roche Diagnostics, and received a $7.5 million milestone payment. The brokerage firm said the partnership with Roche brings "commercialization experience, a sales force, and a global distribution network"
to the company. Piper continues to expect 454 LifeSciences to generate royalties, grant and milestone revenues in 2006.
CuraGen shares were recently trading up 52 cents, or 13%, at $4.53 on volume of 479,683 shares. Average daily volume is 342,744 shares.
-Josee Rose; Dow Jones Newswires; 201-938-5400 |
