UPDATE: Rodman & Renshaw Upgrades PharmAthene to Market Outperform on Clarity from Legal Judgement
Rodman & Renshaw upgrades PharmAthene (NYSE: PIP) from Market Perform to Market Outperform and establishes a price target of $7 a share.
Rodman & Renshaw notes, "The Delaware Chancery Court issued a Final Judgment with favorable economics to PharmAthene. Therefore, we are upgrading our rating from Market Perform (no Target Price) to Market Outperform with a new 12-month Target Price of $7/share. …We estimate that PharmAthene could derive over $150MM in royalties from the initial 1.7MM-treatment course contract that is in place between defense agency BARDA and SIGA. In our calculation, a further $965MM could be collected, if the government orders additional 12MM courses."
PIP closed at $1.56 on Friday.
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