Anesiva, Inc. (ANSV) plans to launch Zingo, a product we see having at least $200 million potential, in June 2008. We are big fans of Zingo and expect the stock to outperform once the market comes to grips with the product potential. In the meantime, development plans with Adlea, a potential billion-dollar blockbuster for post-surgical pain, is progressing nicely in phase III trials.
As such, we think things are going very well for Anesiva. Management continues to operate on plan and 2008 is shaping up to be a banner year. Yet, the stock has languished. Wall Street has yet to take notice and we think that represents an attractive opportunity for small-cap biotech investors. We are pleased with the recent positive developments at the company.
The approval of Zingo in August 2007 was a major step forward and hurdle cleared for management. Since that time management has formed a co-promotion partnership with Sagent Pharmaceuticals and outlined the commercialization launch plans. Sagent, although not a household names, is truly an ideal partner for Anesiva on Zingo considering the company's expertise to gain formulary status and its desire to promote specialty products into the hospital market.
We are bullish on Zingo and believe the drug-device has the potential to become the standard of care. Besides the positive developments with Zingo, Anesiva is also staying focused on leading pipeline candidate Adlea. We continue to see $12 as fair-value and we are reiterating our Buy rating. We arrive at our target by discounting our 2012 EPS estimate of $2.69, applying a peer-group average multiple of 25x, back to present day at 30 per cent.
Read the full analyst report on ANSV.
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