UPDATE: Guggenheim Securities Reiterates Buy Rating, Raises PT on Cadence Pharmaceuticals as Earnings Visibility for Ofirmev Improves

In a report published Tuesday, Guggenheim Securities analyst Louise Chen reiterated a Buy rating on

, and raised the price target from $9.00 to $15.00. In the report, Guggenheim Securities noted, “We arrive at our new 12-month PT of $15 by using a blend of P/E, DCF and Sum-of-the-Parts analysis. The $6 increase in our PT is driven by multiple expansion, which we think is deserved since CADX won its court case against Exela (first to file generic) on 11/14/13. This means Exela cannot launch a generic version of Ofirmev (CADX's flagship drug for post-operative pain management) until 2021. Prior to this, CADX settled with PRGO (BUY, $156.88) for a launch of generic Ofirmev at the end of 2020.” Cadence Pharmaceuticals closed on Monday at $9.43.