An update has just come out today on Nuvelo, Inc. (NUVO), in which senior pharmaceutical industry analyst Jason Napodano, CFA is restating his Hold rating on the company. We excerpted the following details:
'Nuvelo, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of drugs for acute cardiovascular and cancer therapy. Management has decided to move forward with alfimeprase for both catheter occlusion (CO) and stroke. We believe that both trials are high risk, and do not expect the shares to move in anticipation of the results.
'Nuvelo exited the second quarter 2007 with $120.2 million in cash and marketable securities. We remind investors that the company will receive the $15 million Bayer (BAY) payment for the termination of the alfimeprase collaboration sometime in the third quarter. This is approximately $2.50 per share in cash, and above the total market value right now of only $115 million.
'Pipeline candidates NU206 and NU176 are too early-stage to ascribe any value, and thus the shares may be stuck in the $2-3 range for some time. Nuvelo does have over $120 million in cash on hand, and management recently reduced operating expenses and headcount to focus the efforts on alfimeprase. Our rating is Hold and we see $3 as fair.'
Read the full analyst report on NUVO.
Read the full analyst report on BAY.
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