Eagle Pharma Targets Hiked At Piper Jaffray On 'Room For Value Creation'

In a report published Wednesday, Piper Jaffray analyst David Amsellem maintained an Overweight rating on

, while raising the price target from $94 to $119. Eagle Pharmaceutical's agreement with

provides the former with an "ironclad downside protection and leaves ample room for upside," analyst David Amsellem said. Pointing out that Eagle Pharmaceutical could launch its "ready to dilute liquid form of bendamustine (EP-3101; similar infusion times compared to forms of the product that Teva has on the market) on its own next May," Amsellem mentioned that EP-3101 already had a tentative approval in place at the FDA. In case of a major regulatory delay for Eagle Pharmaceutical's rapid infusion product bendamustine, or EP-3102, for which FDA action is expected in December 2015, the company has downside protection from its RTD product, the Piper Jaffray report noted. An upside scenario is possible if Eagle Pharmaceutical is able to switch over a significant chunk of customers of Teva's Treanda product to its RTD product. "We continue to believe that following approval of EP-3102, Teva (who has commercial rights to EP-3102) would look to effectuate a "hard switch" (i.e., Teva would treat the product essentially as a brand line extension)," Amsellem wrote.