Millennium Pharmaceuticals (MLNM ) shares rose after the Food and Drug Administration approved the company's Velcase treatment for multiple myeloma, a bone marrow cancer. UBS Warburg raised its estimates and price target on the news.
Analyst Meirav Chovav says the approval of Velcade is a quarter and a half ahead of her expectations. She raised her 2003 $18 million Velcade sales estimate to $43 million. She sees Velcade sales of $180 million in 2004 and $285 million in 2005. She narrowed her $1.05 2003 loss per share estimate to a $1.00 loss, and sees a loss of 73 cents in 2004. She also raised her $10 price target to $14.
However, Chovav remains cautious on Millennium shares due to near term Integrilin inventories and concerns over the longer term financial risk related to the company's cash burn. She maintained a neutral rating on the stock.