Santarus "outperform," target price reduced

08/10/06 - RBC Capital Markets

NEW YORK, August 10 (newratings.com) - Analyst Douglas Miehm of RBC Capital Markets reiterates his "outperform" rating on Santarus Inc (SNTS), while revising his estimates for the company. The target price has been reduced from $9 to $8.

In a research note published yesterday, the analyst mentions that the company has posted its 2Q06 loss per share lower than the estimates. Santarus' product sales revenues were short of the estimates due to lower prescriptions for the Zegerid capsules and discounts offered to customers, the analyst says. Concerns regarding the company's cash burn are rising, RBC Capital Markets adds. The EPS estimate for 2006 has been raised from -$1.45 to -$1.35. The EPS estimate for 2007 has been reduced from -$0.17 to -$0.28.