Zacks senior genomics industry analyst Grant Zeng, CFA is maintaining his Buy rating on shares of CuraGen Corporation (CRGN), a genomics-based biotech firm. Here's what he had to say about it in today's Buy report:
CuraGen Corporation is a biopharmaceutical company engaged in developing genomic-based drugs for the treatment of various diseases. The company is progressing very well with both its clinical programs and genome sequencing business. The sale of 454 Life Sciences to Roche will reduce CuraGen's top line growth dramatically in the coming years, but will strength its balance sheet. The company now will focus on its cancer programs.
We believe CuraGen shares provide upside potential and are attractive at current levels. We maintain our Buy rating on CuraGen shares with a target price of $6. We come up with this price target by adding a $1 premium to the above $5 because CuraGen has the deepest pipeline among its comparable peers.
As of March 31, 2007, CuraGen had cash and investments of $84.7 million, before considering the gross proceeds expected to be received from the sale of 454 Life Sciences to Roche Holdings. Adding the approximate $75 million cash (after expenses), the company should have about $160 million in cash and investment. During the first quarter of 2007, CuraGen repaid in full its 2007 convertible debt of $66.2 million with cash.
Read the analyst report on CRGN