Progenics Pharmaceuticals "buy," target price reduced

03/13/08 - Punk Ziegel & Co.

NEW YORK, March 13 (newratings.com) - Analyst Sharon R Seiler of Punk Ziegel & Co reiterates her "buy" rating on Progenics Pharmaceuticals (PGNX), while reducing her estimates for the company. The target price has been reduced from $34 to $15.

In a research note published yesterday, the analyst mentions that the first of the Phase III trials to access the use of intravenous (IV) methylnaltrexone for the management of post-operative ileus (POI) in segmental colectomy patients has not met any of its primary endpoint and some of its secondary endpoints. These results are likely to delay the approval of IV methylnaltrexone for POI by at least 12 months, the analyst says. The EPS estimates for 2008 and 2009 have been reduced from -$0.60 to -$0.62 and from $1.36 to -$0.29, respectively.