Tercica "outperform," estimates raised

03/09/07 - Robert W. Baird

NEW YORK, March 9 (newratings.com) - Analysts at Robert W Baird maintain their "outperform" rating on Tercica Inc (TRCA), while raising their estimates for the company. The target price is set to $11.

In a research note published this morning, the analysts mention that the company has reported its 4Q06 EPS, excluding onetime payments, in-line with the estimates. Tercica’s revenues from the Increlex drug were significantly ahead of the estimates, the analysts say. Tercica’s settlement with INSM has provided monopoly to Increlex in the IGFD/short stature market and has improved the drug's commercial outlook substantially. The company's second drug is expected to receive the approval in 3Q07, Robert W Baird adds. The EPS estimate for 2007 has been raised from -$1.22 to -$1.06.