Anybody out there?
Robert M. Cohen & Co. Initiates Coverage of Cypros
Pharmaceuticals; Analyst Sets 18-Month Price Target of $10
Per Share
GREAT NECK, N.Y., Jan. 8 /PRNewswire/ -- Robert M. Cohen & Co. analyst Keith R. Bossey initiated coverage of Cypros Pharmaceuticals (Nasdaq: CYPR - news) with a speculative buy
rating and set an 18-month price target of $10 per share.
Bossey noted that Cypros, a developer and marketer of acute care drugs, is unlike many other small drug development companies in that it is funding much of its internal research and
development through revenue associated with its acquired products. ''We feel that the company may be receiving unfair punishment for its early revenue by having investors focus on its near term earnings and not the potential for its proprietary drugs. It is this undervaluation that makes Cypros attractive at this time,'' Bossey said.
The company has several positives as it moves forward, including Phase III trials on three separate proprietary compounds, according to Bossey. Two of the drugs have revenue potential of as much as $110 million by fiscal year 2002. In addition, Cypros recently acquired a drug delivery system with a market of over $60 million.
Cypros trades at just 10 times Bossey's fiscal year 2000 earnings per share estimate of $0.42. If allowances for further acquisitions are made, the company could approach the average valuation of drug companies over the next 30 months. At an average of 42 times trailing earnings, Cypros could approach a price of $18 over this period, according to Bossey.
BTW: CYPR is not in Phase III trials yet. They actually have two compounds for three indications. |
