Rodman & Renshaw upgraded Encysive Pharmaceuticals (ENCY) to market outperform.
Analyst Navdeep Jaikaria says an EMEA panel adopts a positive opinion on initial marketing authorization appeals for Thelin. He expects EMEA to approve Thelin for marketing in the European Union within the next 90 days. He says safety issues with Thelin noted by the Food and Drug Administration may not be that serious. He thinks Thelin is more likely to be approved ahead of MYOG's ambrisentan (first half of 2007 vs. second half of 2007.) He also notes that shares have traded down significantly since concerns were cited in the FDA approvable letter earlier this year. Despite today's run-up, he would be a buyer of shares. He has a $10 12-month stock price target.