UPDATE: Piper Jaffray Initiates Coverage on Navidea Biopharmaceuticals with Underweight Rating, $1.50 PT on Innovative Pipeline

In a report published Wednesday, Piper Jaffray initiated coverage on Navidea Biopharmaceuticals

with an Underweight rating and $1.50 price target. Piper Jaffray noted, “We are initiating on Navidea at Underweight, with a 12-month price target of $1.50. In our view, its pipeline of radiopharmaceutical diagnostic candidates may offer compelling technical advantages in the clinic. However, our recent diligence on lead candidate Lymphoseek (NDA pending, intra-operative lymphatic mapping) suggests that these advantages are insufficient given projected market size and expected competitive forces -- a risk exacerbated by Navidea's high level of shares outstanding and a near-term need for cash. Should Lymphoseek, which we expect to be approved by the April 30th 2013 PDUFA date, experience robust adoption despite a likely high price vs. competing products, our current risk-averse view could prove overly conservative, although we expect this to take time. Beyond Lymphoseek, Navidea is advancing candidates for imaging Alzheimer's and Parkinson's patients. Here too, our concerns are mainly around the market opportunity rather than clinical development or regulatory strategy.” Navidea Biopharmaceuticals closed on Tuesday at $3.15.