UPDATE: Wedbush Securities Reiterates Outperform Rating, Raises PT on Pharmacyclics

In a report published Friday, Wedbush Securities reiterated its Outperform rating on Pharmacyclics PCYC, and raised its price target from $55.00 to $93.00. Wedbush noted, “Importantly, the change from an ‘incidence-based' model for oncology drugs to a ‘prevalence-based' model is associated with large increases in market opportunities, as we have seen with Gleevec ($4.7B in 2011 sales in chronic myelogenous leukemia, CML). As median PFS for ibrutinib-treated CLL patients enrolled in clinical trials continues to increase, we expect the Street's appreciation of the drug's potential also to increase. Another comparator, we note, Revlimid sales are on a ~$4B run-rate. It is indicated for use in multiple myeloma, an indication with 40% lower prevalence. Industry sources indicate that Revlimid has a ~50% overall market share (more than our 30% iburtinib share estimate), with an average duration of use of ~13 months (less than the likely 18 month+ PFS for ibrutinib in CLL).” Pharmacyclics closed on Thursday at $65.59.