Jefferies Upgrades Nanosphere to Buy

Molecular diagnostics developer Nanosphere NSPH was upgraded from Hold to buy at Jefferies & Company on Tuesday. Jefferies said in the research report that, "We are upgrading NSPH to Buy (from Hold) on expectations for its recently FDA approved gram-positive blood stream infection test to drive a significant acceleration in new system placements & revenue. We are raising our 2012 & 2013 revenue forecasts to $9.5M (from $9M) and $28M (from $20M), respectively. Our PT moves to $5 (from $2) on higher cash flow forecasts." Nanosphere reported on June 27 that it had received the FDA authorization to market its Gram-Positive Blood Culture Test, stating that "the BC-GP test notably expands Nanosphere's infectious disease test capabilities to include fast detection of bacteria that can cause deadly bloodstream infections, an increasingly recognized health threat." “With the BC-GP test, patients suspected of deadly infections can now get a first-ever diagnostic tool for detecting disease-causing bacteria while simultaneously determining antibiotic resistance within the critical timeframe for making and adjusting initial treatment," said William Moffitt, Nanosphere's Chief Executive Officer. On Tuesday, Nanosphere traded at about $3.20, up roughly 27.8 percent. Follow me @BCallwood.