Theravance Shares Rally as Analyst Highlights Co. as Possible Takeover Target If FDA Panel Outcome Positive

Shares of Theravance

have rallied more than 15 percent Monday morning following some bullish comments from Piper Jaffray's M Ian Somaiya this morning. Somaiya believes traders should watch volatility ahead of the release of FDA briefing documents for the advisory meeting for Breo on March 7th. The analyst suggested using any dip in the stock price to load up on shares. Somaiya hinted that a positive vote from the FDA panel could aid in eventually leading to a takeover offer. The Piper analyst noted GlaxoSmithKline

currently holds a 26.95 percent stake in Theravance. Somaiya feels Theravance could be worth $51 per share in the event of a takeover. Piper Jaffray maintains an Overweight rating and $32 price target on shares of Theravance.