UPDATE: Piper Jaffray Reiterates Overweight Rating, Lowers PT on Rigel Pharmaceuticals

In a report published Monday, Piper Jaffray & Co. reiterated its Overweight rating on Rigel Pharmaceuticals RIGL, but lowered its price target from $16.00 to $14.00. Piper Jaffray noted, “We are reiterating our Overweight rating ahead of data from all three fostamatinib Phase III trials in early 2013. We believe the OSKIRA-4 Phase II trial (4Q12) could provide investors with an early look at fostamatinib's efficacy and safety prior to the Phase III readouts expected in January 2013. We believe the OSKIRA-4 trial could address lingering concerns related to blood pressure elevations and market positioning of fostamatinib; ultimately reducing risk associated with the Phase III data release. We continue to expect fostamatinib to generate $1-2bn in peak sales in RA alone, with Rigel collecting a 25-30% royalty at no cost.” Rigel Pharmaceuticals closed on Friday at $9.25.