UPDATE: Piper Jaffray Initiates Coverage on Cadence Pharmaceuticals at Neutral on Ofirmev Generics Likely to Continue to Gain Traction

In a report published on Wednesday, Piper Jaffray analyst David Amsellem initiated coverage on Cadence Pharmaceuticals CADX with a Neutral rating and a price target of $7.00. In the report, Piper Jaffray noted, "In our survey of nearly three dozen surgeons, the vast majority polled use a multi-modal approach to post operative pain (i.e., opioids, local analgesics like bupivacaine, non-steroidal anti-inflammatory drugs (NSAIDs) and acetaminophen). Given this backdrop, and the risks related to opioids, it was not surprising to us that just under half of those we polled are already using Ofirmev (albeit still in a minority of patients), and over a third of those polled are planning to use Ofirmev more frequently in the next 6-12 months. Given this feedback, and the fact that Ofirmev is not an opioid and does not have the bleeding risks that hamper NSAIDs, we believe U.S. sales north of $225M by 2015 and peak sales of $450M-$500M are realistic." Cadence Pharmaceuticals closed on Wednesday at $7.64.