Wedbush Maintains Outperform, $5 PT on Zalicus

Wedbush reiterates its Outperform rating and $5 target price on Zalicus

as the company initiates Phase I for Z944, continues to grow Exalgo sales and expects Synavive Phase IIb results by mid 2012. Wedbush says, " Zalicus announced that it has initiated a Phase I trial for Z944, its t-type Ca channel blocker for the treatment of pain. ...Wolters Kluwer weekly sales data continues to suggest EXALGO sales growth inline with estimates; we anticipate YE:12 EXALGO royalties of $7.5 million. Exalgo royalties from partner Covidien to ZLCS, based upon product sales, have been increasing 51% and 39% in Q2/Q1 and Q3/Q2, respectively. ...The next catalyst for ZLCS is top-line data for Synavive from the Phase IIb SYNERGY trial in rheumatoid arthritis in June 2012." ZLCS closed at $1.20 per share on Tuesday.