UPDATE: Dawson James Initiates Affymax at Market Outperform on Momentum

Dawson James initiated coverage on Affymax

with a Market Outperform rating and a $32 price target. Dawson James commented, "Commercialization of new products is always tricky, especially in the current environment; however, we believe Omontys is an ideal product for the dialysis market given the new “bundled” pricing structure. … In addition, the receipt of a permanent “J code” (taking effect January 1, 2013) from the Centers for Medicare and Medicaid Services (CMS) should help lubricate reimbursement conditions and persuade any hold-outs to make the conversion from Epogen to Omontys. As sales growth momentum continues, so also should share price appreciation." Affymax closed at $23.55 on Monday.