UPDATE: Goldman Sachs initiates on Synageva Following Positive Phase II Data On Sebelipase

In a report published Thursday, Goldman Sachs analyst Navdeep Singh initiated a Buy rating on Synageva BioPharma (NASDAQ: GEVA) and initiated a price target of $72.00.In the report, Goldman Sachs says "We initiate coverage of Synageva with a Buy rating and a 12m target of $72.Synageva develops drugs for rare diseases, which have (1) lower regulatory hurdle, (2) significant pricing power and (3) attractive profit margins. Synageva's lead candidate is sebelipase, an enzyme replacement therapy (ERT) in a phase 3 trial for LAL deficiency. Based on positive phase 2 data, we believe phase 3 data in H2:14 will be positive. This would unlock a $1+bn market opportunity. We anticipate a strong launch given management's experience with rare disease launches, the potential for a test to increase awareness/diagnosis, pricing power and the absence of a competitive threat."Synageva closed on Thursday at $52.61.