UPDATE: Jefferies Initiates Coverage on AcelRx Pharmaceuticals with Buy Rating, $8 PT on Expected FDA Approval for ARX-01

In a report published Monday, Jefferies analyst Corey Davis initiated coverage on AcelRx Pharmaceuticals

with a Buy rating and $8.00 price target. In the report, Davis noted, “We expect FDA approval of ACRX's lead product candidate, ARX-01 (a novel sufentanil nanotab PCA system), in 2014 given the solid body of data from Ph2/initial Ph3 success. We see a clear market opportunity for ARX-01 given the current standard of care for post-op pain control is fraught with drawbacks. We forecast $400M peak potential and little threat of generics. Pipeline and partnerships represent upside to our numbers/valuation.” AcelRx Pharmaceuticals closed on Friday at $4.90.