Piper Jaffray Reiterates Overweight Rating, $26 PT on Affymax

In a report published Monday, Piper Jaffray & Co. reiterated its Overweight rating and $26.00 price target on Affymax

. Piper Jaffray noted, “IMS reported August Omontys sales of $3.5mn, up from $2.1mn in July. We believe these data suggest 3Q12 sales of ~$9-$10mn, inline compared to Street estimates. In contrast, we believe the $7.9mn in August Omontys sales reported by Source Healthcare Analytics point toward a $15-20mn quarter and upside to Street estimates. We remain comfortable with our above consensus 3Q estimate for Omontys ($14.0mn) as our diligence suggests Fresenius has completed conversion of its planned 10k patients onto Omontys and we expect US Renal Care and Satellite Healthcare to begin transitioning patients in September, providing additional upside. Longer term, we expect upside to be driven by small and medium dialysis organizations and a longer term supply agreement with Fresenius, which could provide investors with visibility on US peak sales of >$500mn. We would be buyers of AFFY shares with any volatility stemming from today's IMS data release.” Affymax closed on Friday at $21.06.