UPDATE: Piper Jaffray Initiates Transcept Pharmaceuticals at Overweight on Sleep Aid Potential

Piper Jaffray initiated coverage on Transcept Pharmaceuticals TSPT with an Overweight rating and an $8 price target. Piper Jaffray noted, "Transcept has developed a novel sleep aid, Intermezzo, which we believe has under-appreciated potential and is backed by a large commercialization commitment from Purdue Pharma. In our view, impediments to adoption of Intermezzo have been reimbursement and pricing-driven, but also low patient awareness. We believe that Purdue's experience and commitment to Intermezzo, highlighted by the recent decision to promote Intermezzo with its pain-drug sales force and direct-to-consumer efforts by both companies, can drive uptake that is more consistent with our valuation." Transcept Pharmaceuticals closed at $4.74 on Thursday.