Piper Jaffray Sees Commerical Risk For Budesonide MMX
Piper Jaffray remains on the sidelines despite the fact that Santarus (NASDAQ: SNTS) and partner Cosmo announced positive results from Phase III study testing of budesonide MMX.
In the research note, Piper Jaffray writes "Though the data look strong and we believe there is room for a colon-targeted corticosteroid, we continue to believe that mesalamine-based formulations will remain the dominant anti-inflammatory agent for UC, pointing to considerable commercial risk for budesonide MMX. Our model had already reflected modest sales of budesonide MMX. We continue to believe that peak sales potential is less than $100M. With SNTS only marginally profitable for 2010 through at least 2012, and given the commercial risks surrounding lead drug candidates budesonide MMX and rifamycin SV MMX, we would remain on the sidelines."
Piper Jaffray maintains its Neutral rating and $3.50 price target.
Santarus Inc. closed yesterday at $2.80.
