UPDATE: Stifel Nicolaus Initiates Synta Pharmaceuticals at Hold; Enthusiasm Outpaces Expectations

Stifel Nicolaus initiated its coverage on Synta Pharmaceuticals

with a Hold rating, as the company may be rushing development on its promising pipeline. Stifel Nicolaus said, "While we view Ganetespib as the leading Hsp90 inhibitor in clinical development, we remain cautious on the conduct and expectations for the ongoing Phase 2b/3 GALAXY trial in NSCLC. … Lastly we believe the expectation for top-line results from the Phase 3 portion by mid 2014 is not feasible since the median survival for second-line NSCLC treated with Taxotere monotherapy is about 6-7 months. In our opinion lofty expectations that are not likely to be met, will not likely be positively perceived by investors." Synta Pharmaceuticals closed at $6.75 on Wednesday.