Tuesday, April 10, 2007

Calls of Note Part 2

Cowen says that Critical Therapeutics' (NASDAQ:CRTX) recent co-promotion agreement with Dey Labs improves visibility on the Zileuton CR sales ramp, given the established presence of Dey's 200-rep respiratory specialist sales force. The FDA's 10-month review deadline for Zileuton CR is May 31st: we project an approvable letter followed by final approval and launch later this year. Firm projects Zileuton franchise sales of $125MM in 2011, based on 2-3% share of the U.S. moderate/severe asthma market. Critical Therapeutics also gains co-promotion rights to a Dey COPD product which is currently pending approval. And they believe the HMGB1 antibody program (with MedImmune) has intriguing potential as a broad inflammatory mediator. With approximately $1.20 in net cash per share, firm believes CRTX shares are attractively valued.

Notablecalls: Fundamentally there's really nothing in this call to make me buy the stock. However, recent days have been kind for small biotech stocks, so such call may catch attention of speculative traders.

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