UPDATE: Brean Murray Carret Initiates Coverage on Ventrus Biosciences
Brean Murray Carret and Co. initiates coverage of Ventrus Biosciences (NASDAQ: VTUS) at a Buy rating and a price target of $30.
Brean Murray Carret and Co. comments, “We are initiating coverage of Ventrus Biosciences Inc. with a Buy rating, as we believe that VEN 309 has blockbuster potential, given its proven efficacy, large target market and the lack of competitive prescription hemorrhoid drugs. Our Buy rating and 12‐month target price of $30 are based on a DCF analysis using a 40% discount rate and a 6x multiple of the terminal value for the projected 2022 EBITDA of $936 million. Ventrus is focused on developing drugs for gastrointestinal indications. The company's lead drug candidate, VEN 309, has completed several Phase 2 trials in patients with hemorrhoids, and within weeks, Phase 3 data will be released that we believe will support approval. Ventrus' secondary product, VEN 307, has already succeeded in a European Phase 3 trial, and we look forward to the pivotal Phase 3 trial in the U.S. beginning enrollment in 2H12.”
VTUS closed at $10.04 on Wednesday.
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