Sterne Agee Initiates Coverage On Cyberonics

In a report released Monday, Sterne Agee analyst Gregory Chodaczek initiates coverage on Cyberonics, Inc. CYBX with a Buy rating and a price target of $65 a share. Chodaczek believes Cyberonics potential is in Epilepsy being the fourth most common neurological disorder in the country. In the United States alone, approximately 2.2 million people are diagnosed with epilepsy and about 400,000 are believed to require neuromodulation therapy. Chodaczek projects refractory epilepsy market penetration to be 10 percent, presenting massive opportunity for Cyberonics. Cyberonics reports it owns or licenses about 173 U.S. patents and 299 pending U.S. patent applications. Product Pipeline. Over the past three fiscal years, Cyberonics balance sheet consists of $120 million on clinical and regulatory actions to improve its VNS franchise. Cyberonics Model 106 (AspireSR) is speculated by Sterne Agee to be the first product in Cyberonics pipeline to receive FDA approval. Shares of Cyberonics trade slightly higher, up 0.36 percent, before Tuesdays closing bell.