UPDATE: Piper Jaffray Initiates Coverage on BioDelivery Sciences International with Neutral Rating, $5 PT

In a report published Friday, Piper Jaffray & Co. initiated coverage on BioDelivery Sciences International

with a Neutral rating and $5.00 price target. Piper Jaffray noted, “We are initiating on BioDelivery Sciences at Neutral with a 12-month price target of $5. BioDelivery reformulates existing drugs with its novel BioErodible MucoAdhesive (BEMA) film technology for rapid, non-invasive delivery. It has an approved product, Onsolis (BEMA-fentanyl), and two late-stage candidates, BEMA buprenorphine for chronic pain (BBCP) and BEMA buprenorphine/naloxone (BNX) for opioid dependence. Based on our diligence, we believe the candidates are technologically advanced over potential competitors and may prove to win pole position in their respective markets. Given our market penetration assumptions for BBCP and BNX, shares are potentially undervalued at current levels for the longer term. However, given the strong 12-month performance, we anticipate BDSI shares may trade in a range over the next 9-12 months as clinical and regulatory progress becomes more visible, and investors assess the future dynamics of the chronic pain and opioid dependence markets.” BioDelivery Sciences International closed on Thursday at $4.51.