Message #21 From:
NewsBot Date: January 10, 2007 09:00:00 AM
APPA News Dutton Associates Announces Investment Opinion: AP Pharma Strong Speculative Buy In Update By Dutton Associates
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Dutton Associates updates its coverage of AP Pharma (Nasdaq:APPA) with
an upgrade of its rating to Strong Speculative Buy. The 10-page report
by Dutton senior analyst Stephen L. Handley is available at www.jmdutton.com
as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and
other leading financial portals.
We are maintaining our Strong Speculative Buy rating, although our
previous one-year price target of $3.00 per share now appears to be too
ambitious (in view of recent announcements, the stock’s
current price, and possible dilution from additional equity financing),
we have somewhat arbitrarily reduced this target to $2.00. This should,
in effect, represent a partial advance to a higher level we would expect
once APF530 is commercialized, which we now assume will be in 2009. Its
primary focus is on bioerodible systems, either injectable or
implantable, that incorporate its proprietary Biochronomer™
technology. Management is now devoting virtually all of the Company’s
resources to the clinical trials and regulatory documentation in support
of the eventual commercialization of its key compound, APF530, which is
being developed for the prevention of acute and delayed
chemotherapy-induced nausea and vomiting (CINV), where there is an
important identifiable need for APF530’s
therapeutic features. On December 21, management announced that it now
believes it will not meet a previously announced target of filing this
compound’s NDA in 2007. The concentrated focus
on APF530 means that management is pursuing a high risk/high reward
strategy. We believe that this is the correct move because we judge that
the risk of not eventually achieving commercialization of APF530 is very
low, while the probability of this compound ultimately achieving great
commercial success is quite high.
About Dutton Associates
Dutton Associates is one of the largest independent investment research
firms in the U.S. Its 31 senior analysts are primarily CFAs, and have
expertise in many industries. Dutton Associates provides continuing
analyst coverage of over 140 enrolled companies, and its research,
estimates, and ratings are carried in all the major databases serving
institutions and online investors.
The cost of enrollment in our one-year continuing research program is US
$39,500 prepaid for 4 Research Reports, typically published quarterly,
and requisite Research Notes. Dutton Associates received $85,000 from
the Company for 11 Research Reports with coverage commencing on
12/05/03. The Firm does not accept any equity compensation. Our
principals and analysts are prohibited from owning or trading in
securities of covered companies. The views expressed in this research
report accurately reflect the analyst's personal views about the subject
securities or issuer. Neither the analyst's compensation nor the
compensation received by us is in any way related to the specific
ratings or views contained in this research report or note. Please read
full disclosures and analyst background at www.jmdutton.com
before investing.
