UPDATE: Aegis Capital Initiates PharmAthene at Buy; Enterprise Undervalued

Aegis Capital initiated coverage on PharmAthene PIP with a Buy rating and a $6.00 price target. Aegis Capital commented, "We believe that PharmAthene's current enterprise value of roughly $50mm neither gives adequate credit to the company's own proprietary pipeline nor appropriately values the potential for significant revenues from ST-246 sales. Accordingly, therefore, we believe the company presents a risk-mitigated opportunity at this juncture. We consider the appropriate valuation for the company to be in the >$300mm range, and note that the firm has sufficient cash to get through 2013." PharmAthene closed at $1.29 on Tuesday.