UPDATE: Piper Jaffray Upgrades Array Biopharma to Overweight, Raises PT Ahead of Pivotal Starts

In a report published Monday, Piper Jaffray analyst Edward A. Tenthoff upgraded the rating on Array Biopharma

from Neutral to Overweight, and raised the price target from $4.00 to $7.00. In the report, Tenthoff noted, “We are upgrading Array to Overweight from Neutral and increasing our price target to $7 from $4 ahead of initiation of pivotal trials for several programs later this year. Firstly, we expect partner Novartis to begin Phase III trials of MEK-162 in Nras melanoma and in combination with LGX818 in Braf melanoma. Similarly, partner AstraZeneca intends to begin Phase III trials of selumetinib in Kras NSCLC and in thyroid cancer. Most importantly, Array will report additional Phase II data on KSP inhibitor ARRY-520 in refractory multiple myeloma at ASH and announce pivotal trial plans. Array will also articulate pivotal plans for p38/Tie2 inhibitor ARRY-614 in MDS around YE:13. Array has several partnering opportunities in 2013 that could bring in non-dilutive funding and extend the company's cash runway.” Array Biopharma closed on Friday at $4.29.