UPDATE: Stifel Initiates Coverage on Sophiris Bio on Strong PRX302 Potential

In a report published Tuesday, Stifel analyst Joel Sendek initiated coverage on Sophiris Bio (NASDAQ: SPHS) with a Buy rating and $9.00 price target.In the report, Stifel noted, “We are initiating coverage of Sophiris Bio, Inc. (SPHS) with a Buy rating on the shares and a $9 target price. We believe PRX302's development will benefit from management's proven record of developing therapeutics and selling companies. We believe PRX302 has a high likelihood of success in phase 3 trials based on positive phase 2 data and a sound mechanism of action. PRX302 demonstrated statistically significant reduction in benign prostatic hyperplasia (BPH) symptoms in a small, double-blinded, placebo-controlled phase 2 trial. PRX302 uses a well-documented cell killing agent, that doctors inject directly into the prostate. We believe PRX302 has a 75% chance of success in phase 3 trials, higher than the industry average of 50%.”Sophiris Bio closed on Monday at $4.55.