Wedbush Initiates Coverage Of Gentium S.p.A. With Outperform Rating And $16 Fair Value

In a report published by Wedbush, its initiating coverage of Gentium S.p.A. GENT with an Outperform rating and $16 fair value.

Wedbush said that Gentium, S.p.A, is a cash-flow positive biotechnology company focused on using defibrotide to treat and prevent Veno-Occlusive Disease (VOD), a Stem Cell Transplant (SCT) complication with a high mortality and morbidity rate. “We are initiating coverage with a OUTPERFORM rating and a $16 fair value. We derive our fair value estimate by applying a 6x multiple to 2012 defibrotide sales, combined with an 15X multiple on 2012 US royalty income, discounted 25% annually, as Gentium is already essentially a commercial company. We use the current exchange rate of $1.38: €1.”

Gentium S.p.A.closed yesterday at $9.15.