Piper Jaffray Maintains Overweight on Affymax

Piper Jaffray has published a research report on Affymax

making positive comments on the company's contract negotiations. In the report, Piper Jaffray writes, "We continue to expect adoption to be driven by Omontys convenient once monthly dosing and discounted pricing strategy. We expect ease of reimbursement afforded by the Q-code (J-code in 2013) to further remove any barriers to adoption. We remain buyers of AFFY as profit taking following FDA approval of Omontys has provided an ideal entry point for investors. We expect signing of supply agreements with small and medium-dialysis providers in the near term to provide visibility on the drug's launch trajectory and peak sales potential, which we estimate at $750mn worldwide, making AFFY one of the more attractive small cap names in our coverage universe." Piper Jaffray maintains its Overweight rating and $20 price target on Affymax, which is currently trading up $0.03 from yesterday's $11.32 closing price.