UPDATE: Piper Jaffray Downgrades Trius Therapeutics Following Cubist Acquisition
In a report published on Wednesday, Piper Jaffray analyst Edward Tenthoff downgraded Trius Therapeutics (NASDAQ: TSRX) from Overweight to Neutral and raised the price target from $11.00 to $14.82.
In the report, Piper Jaffray stated, "Yesterday, Cubist (CBST) announced the acquisition of Trius for $13.50 in cash plus one non-tradeable $2.00 contingent value right (CVR). Under the terms of the CVR, each TSRX shareholder will receive $1.00 if net tedizolid sales in the U.S., Canada and Europe reach $125 million in 2016 and up to another $1.00, paid on a pro rata basis, for the next $10 million in 2016 net sales up to $135 million. We presently forecast 2016 tedizolid sales of $188 million, so we see a good chance that the full $2.00 CVR will be paid out. Applying an 18% discount rate back through today, we arrive at present CVR value of $1.32."
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