Wedbush Lowers Cadence PT to $10 from $15

In a research note published today, Wedbush lowered its price target on Cadence Pharmaceuticals CADX to $10 from $15, but reiterated an outperform rating on the stock. The research firm said equity dilution and a longer time frame to peak sales were catalysts for the trimmed price target. “Our fair value was reduced by $3 due to the additional 21.8MM shares and by $2 due to pushing out our peak sales by one year. Our fair value is calculated based on sum-of-parts for each drug/indication combination using a 30% annual discount from our peak annual sales projections and 1-10x multiple depending on stage of development to reflect risk,” Wedbush said in a note. California-based Cadence is a biopharmaceutical company, focuses on in-licensing, developing, and commercializing proprietary product candidates principally for use in the hospital setting in the United States and Canada.