- FBR notes Pharmion (NASDAQ:PHRM) joins CELG as a biotech Top Pick on the FBR Top Picks list. Firm thinks PHRM should be trading at $32 in the next 12 months, implying 37% appreciation potential. They reach their $32 target by multiplying 2010 EPS estimate of $1.61 by a multiple of 30x and discounting at 20%. Firm's 2010 EPS assumes revenue of $482M, but there could be upside to this number; the company recently guided for revenues to range from $600M to $825M in 2010.
Drivers for outperformance include: further evidence from monthly data that Vidaza can survive - and even grow " with Dacogen now on the market, key presentations at ASH that position Vidaza for further growth, and 1H07 filings in Europe on thalidomide (calling attention to the possibility that approval could double sales from its current run rate of $76 million) and satraplatin in prostate cancer.
Notablecalls: Expect to see some mild buy interest following the call.
Drivers for outperformance include: further evidence from monthly data that Vidaza can survive - and even grow " with Dacogen now on the market, key presentations at ASH that position Vidaza for further growth, and 1H07 filings in Europe on thalidomide (calling attention to the possibility that approval could double sales from its current run rate of $76 million) and satraplatin in prostate cancer.
Notablecalls: Expect to see some mild buy interest following the call.
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