MGI Pharma Shares Up on Sales, Study Data
© 2006 The Associated Press
NEW YORK — Shares of MGI Pharma Inc. rose in trading on Tuesday as Wall Street was encouraged by the biopharmaceutical company's strong sales of its leukemia treatment drug Dacogen and positive trial data for surgical sedative Aquavan.
Merrill Lynch analyst Eric Ende said MGI has reported positive trial data for Aquavan usage as a sedative used during colonoscopy, and said declining operating costs in 2007 are from lower development program costs related to the drug.
Ende reiterated a "Buy" rating on MGI shares, noting that the company also recently confirmed at least $70 million in third-quarter sales of its chemotherapy-related nausea treatment Aloxi.
Bank of America analyst David W. Maris, also maintaining a "Buy" rating, was encouraged by the Aquavan results, noting that a potential advantage of Aquavan is that when the drug is used during certain procedures, an anesthesiologist may not be required. He said he expects the company to file application for the drug's approval with the Food and Drug Administration in the first half of 2007.
MGI Pharma has seen a series of successes over the past few months, Maris added, including the approval and solid launch of Dacogen.
"With a full pipeline of mid-to-late stage products supported by a solid base of sales led by Aloxi, MGI Pharma represents a company with several growth prospects," Maris wrote in a client note.
Lazard Capital Markets analyst Joel Sendek likewise kept a "Buy" rating on MGI shares, saying the market for mild sedation in colonoscopy, endoscopy and bronchoscopy procedures is substantial.
"With 24 million procedures performed last year, Aquavan's quick onset of action, fast recovery period and ease of administration should provide a competitive advantage over the current generic options, propofol and midazolam," Sendek wrote.
Shares of MGI Pharma closed up 96 cents, or 6 percent, at $16.91 on the Nasdaq. In after-hours electronic trading, shares added another 6 cents. |
