UPDATE: JP Morgan Initiates Overweight on ZIOPHARM Oncology; Standard Bearing Asset

JP Morgan initiates its coverage on ZIOPHARM Oncology ZIOP with a rating of Overweight and a price target of $7. JP Morgan notes, "We are initiating coverage of ZIOP with an OW rating and a YE12 target of $7. Lead asset, palifosfamide (pali), is in Phase 3 (PICASSO 3) for soft tissue sarcoma (STS). If data is positive, we expect pali to become the new standard of care front line therapy. Top-line data are expected in 2H12, and we assign a 65% probability of success. Small cell lung cancer represents a compelling, albeit higher risk, second shot on goal." ZIOP closed at $4.39 on Thursday.