Myogen (MYOG ) reported 60 cents second-quarter loss per share, vs. 50 cents loss a year ago. First Albany upgraded the stock to strong buy.
Analyst Lucy Lu says that with upcoming catalysts, she believes the current risk/reward on Myogen is very attractive. She says while she views ambrisentan drug as Myogen's fundamental valuation driver, she believes darusentan has now become a free option with substantial upside. She notes she assumes an ambrisentan approval and commercialization in 2008.
Lu raised $28.2 million 2008 ambrisentan U.S. sales estimate to $31.5 million, 2009 estimate to $133.4 million from $68.6 million, and 2010 estimate to $257.3 million from $119.2 million.
She raised her $8 price target to $18; her NPV indicates ambrisentan is worth $17 a shrare, and darusentan is worth $11 share.