An update has just come out today on Anadys Pharmaceuticals, Inc. (ANDS), in which senior pharmaceutical industry analysts Grant Zeng, CFA and Varun Parwal are restating their Hold rating on the company. We excerpted the following details:
'Anadys Pharmaceuticals is a biopharmaceutical company engaged in discovering, developing and commercializing small molecule anti-infective medicines for the treatment of chronic viral and bacterial infections. The company has undertaken a major restructuring program and will focus on the development of only two compounds, ANA598 and ANA773, both in pre-clinical stages of development. We do not see the company becoming profitable anytime soon.
'The company remains committed to developing more effective treatments for chronic hepatitis-C virus [HCV] infections. However, these products are in very early stages of development, and operating expenses are on the rise. We believe the company will continue to incur losses for the next several years.
'As such, we maintain our Hold rating on the shares. We would like to see more visibility on the company s development programs before we recommend the shares.
'Our $2.50 price target is based on our revised 2007 revenue estimate of $5.2 million, multiplied by a P/S multiple of 13.6x, divided by the shares outstanding. The price target calculation assumes shares outstanding to be 28.6 million for 2007.'
Read the full analyst report on ANDS.
Get real-time market insights and profitable stock recommendations from the team of analysts at Zacks Equity Research. See all todays Analyst Blog entries on Zacks.com.