UPDATE: Credit Suisse Initiates Sunesis Pharmaceuticals at Outperform Ahead of Phase II Data

Credit Suisse initiated coverage on Sunesis Pharmaceuticals, Inc.

with an Outperform rating and a $7.00 price target. Credit Suisse commented, "SNSS is a binary risk stock for which upside potential and probability of success are not fully reflected in the current share price. In part, we believe this is because the Phase III read out for vosaroxin is not expected until early 2014. However, we believe that shares could move significantly higher ahead of the event. Investors with binary risk tolerance should consider owning SNSS through the VALOR results. SNSS owns global rights to vosaroxin (owes a midteen royalty), so positive results would put SNSS on a path to commercial profitability or a potential premium acquisition." Sunesis Pharmaceuticals closed at $4.00 on Monday.