Kosan Rises on New "Outperform" Rating
Friday January 5, 12:47 pm ET
Cancer Drug Maker Kosan Biosciences Gains 5.1 Percent After "Outperform" Rating
NEW YORK (AP) -- Shares of biotechnology company Kosan Biosciences Inc. jumped 5.1 percent Friday after an analyst gave it an initial "outperform" rating.
Michael King of Rodman and Renshaw set a price target of $9 per share for the Hayward, Calif.-based company, which is developing cancer therapies. Alvespimcyin, a breast cancer treatment, is in late stage clinical trials, and studies are beginning on multiple myeloma drug tanespimycin.
The company is also making progress with heat shock protein inhibitors, which help stop cancer cells from surviving.
Kosan is undervalued due to management mistakes, King said in a client note, making it a better value than some of its competitors.
King expects results of drug trials to improve Kosan's stock price, while the heat shock protein inhibitor Hsp-90 could prove very important in future cancer treatment.
However, he said, the drugs can always fail, and the company should continue to lose money. Kosan also faces competition from GlaxoSmithKline and other companies.
Kosan shares rose 27 cents, or 5.1 percent, to $5.82 from $5.55 in midday Nasdaq Stock Market trading. |
