UPDATE; Deutsche Bank Raises PT on Inspire Pharmaceuticals to $5 (ISPH)

Deutsche Bank is out with its report today on Inspire Pharmaceuticals ISPH, raising its PT from $4 to $5, after Merck announced its agreement to acquire Inspire Pharmaceuticals. In a note to clients, Deutsche Bank writes, "Merck's proposed valuation is in line with our sum-of-the-parts analysis (AzaSite plus royalties from Restasis and Diquas) of $4/share. Hence, reflecting the inclusion of cash (which we previously viewed as a "wasting" asset), we are raising our PT to $5 (from $4). We do not expect other bidders or higher offers will emerge." Deutsche Bank maintains Hold on ISPH. Shares of ISPH closed Tuesday at $4.97.