J.P. Morgan Initiates Coverage on Rigel Pharmaceuticals

J.P. Morgan Chase & Co. is out with a research report on Rigel Pharmaceuticals

and is initiating coverage with an Overweight rating and a $14 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "We are initiating coverage of RIGL with an OW rating and a YE12 $14 PT. RIGL's lead asset, fostamatinib, is partnered with AZN and is in Ph3 development for rheumatoid arthritis (

). Fostamatinib is a novel oral drug that could potentially represent an important new treatment option for RA based on its promising efficacy and what we consider to be a manageable safety profile. We believe that RIGL is undervalued based on fostamatinib's potential in RA and, although Ph3 data are not expected until 2H12, shares could appreciate in anticipation of positive results." Shares of RIGL lost 36 cents yesterday to close at $6.97.