UPDATE: Jefferies Initiates Coverage on Synta Pharmaceuticals

According to a research report published this morning, Jefferies has initiated Synta Pharmaceuticals

with a Buy rating and $7 PT. Jefferies commented in the report, "SNTA is primarily focused on developing ganetespib, its lead Hsp90 inhibitor for cancer. We are optimistic about the potential of ganetespib in lung cancer, which has multiple paths to market, the earliest of which may be through the recently initiated Phase 2 trial in ALK+ NSCLC. SNTA also expects to advance an undisclosed NSCLC subpopulation from the Phase 2b/3 GALAXY trial into the Phase 3 stage by YE12." Synta Pharmaceuticals closed yesterday at $3.80.