Alexza Upgraded to Outperform - Analyst Blog

In a research report posted today by Senior Biotechnology Analyst, Jason Napodano, CFA, the recommendation on Alexza Pharmaceuticals (ALXA) was upgraded from Neutral to Outperform.

In the report, Napodano writes, “We believe the odds favor approval for AZ-004 in October 2010. The device has the potential to create a significant market for the rapid and non-invasive treatment of acute agitation. We believe Alexza has an ideal partnership with Biovail for the commercialization of AZ-004, and at $2.70/share the market is undervaluing this opportunity. We have established a near-term target of $4."

For frequent readers of Napodano’s work, the upgrade in recommendation on Alexza should not come as a surprise.  In the past, Mr. Napodano has called the company’s Staccato inhalation system, “The best inhaled technology in the market" and stated that, “AZ-004 (Staccato loxapine) device has $400 to $500 million potential."

He further states, “Over the long-term, which is how we base our recommendation on Alexza, we really like the story. Approval of AZ-004 in October 2010 will be a transformation event for the company.  ...We would encourage investors to...focus more on the market potential opportunity for AZ-004."

We encourage investors to view the full research report on Alexza Pharmaceuticals posted on the Zacks website, or to contact Mr. Napodano or their Zacks Institutional Sales professional for a copy of the report.

For additional information on the differences between the Zacks Rank and the Zacks Recommendation, please see the following article: http://www.zacks.com/education/zacks_rank_education
Read the full analyst report on "ALXA"
Zacks Investment Research