NeoPharm "neutral," target price reduced

12/12/06 - Robert W. Baird

NEW YORK, December 12 (newratings.com) - Analysts at Robert W Baird reiterate their "neutral" rating on NeoPharm Inc (NEOL), while reducing their estimates for the company. The target price has been reduced from $8 to $2.

In a research note published yesterday, the analysts mention that the company has announced that its Phase 3 PRECISE trial for cintredekin besudotox (IL-13) has failed to show better efficacy than Gliadel. NeoPharm is now left with few value drivers in its pipeline, with the Neolipid development programme having put on the backburner, the analysts say. The EPS estimates for 2007, 2008 and 2009 have been reduced from -$1.45 to -$0.82, from -$0.63 to -$0.82 and from $0.50 to -$0.81, respectively.