Deutsche Bank Reiterates Buy Rating, $8 PT on Cadence Pharmaceuticals on In-Line Q4 Loss

In a report published Friday, Deutsche Bank reiterated its Buy rating and $8.00 price target on Cadence Pharmaceuticals

. Deutsche Bank noted, “Excluding one-time charges totaling $8.9M, Cadence reported a non-GAAP Q4 loss of $12.5M (or -$0.15/sh), vs our est of -$13.5M (-$0.15/sh), on revs of $17.2M – $0.8M (or 4.7%) ahead of our forecast. Note that the company had previously preannounced Q4 product revs of $17.1M and issued 2013 Ofirmev rev guidance of $94-100M in late January. The solid topline performance, which exceeded mgt's $15.9-16.4M guidance for Q4, and lower than expected R&D spend (-$1.1M) was offset by lower than projected gross margin of 58.2% (vs DBe 61.9%), impacted by unabsorbed costs associated with idle manufacture at Baxter. Cadence ended 2012 with cash and short term investments of $62.1M (vs $74.5M on Sept 30, 2012). Of note, the company received an additional $14.6M in cash related to the waiver of its option to acquire Incline and the sale of Incline stock to The Medicines Co. in January 2013. And mgt continues to believe that they can reach break-even on current cash levels.” Cadence Pharmaceuticals closed on Thursday at $5.29.