Two Small Cap Pharma Stocks Credit Suisse Loves

Analysts at Credit Suisse reiterated their preference for ZS Pharma Inc ZSPH and Adamas Pharmaceuticals Inc ADMS among their coverage of small-cap pharma stocks.

ZS Pharma is the "favored name," as the analysts highlighted important upcoming catalysts as reasons that the stock could extend recent gains. In May alone, ZS Pharma gained nearly 55 percent, erasing earlier year-to-date losses. The stock is now up 42 percent YTD. The $67 price target would represent another 14 percent upside from Tuesday's closing price.

Specific to ZS Pharma, Credit Suisse said that the company will continue to benefit from the hyperkalemia market, with the company's ZS-9 drug being an "attractive" opportunity. ZS Pharma will file ZS-9 with the FDA this quarter.

The price target on Adamas Pharma indicates much more upside potential - gains of 37 percent to $24 - should the bullish scenario play out. The analysts said that the main value driver is progress with ADS-5102, which should start clinical development this quarter. This view differs from the market, the analysts said, in that most of the market is looking at value derived from royalties from two other treatments, Namenda XR and Namzaric.

Credit Suisse also noted that it had Neutral ratings on Qiagen NV QGEN and Genomic Health, Inc. GHDX. The analysts have a Underperform rating on Myriad Genetics, Inc. MYGN.