UPDATE: Piper Jaffray Lowering Price Target On Human Genome Sciences

Piper Jaffray is out with a research report on Human Genome Sciences HGSI and it is lowering its price target to $31 from $36, but is keeping its Overweight rating. In a note to clients, Piper Jaffray writes, "HGS reported 2Q11 Benlysta sales of $7.8mn, in line with Street estimates of $8.2mn. We believe rate of adoption, which saw $1.05mn net weekly sales of Benlysta in last four weeks of the quarter versus $630,000 and $270,000 for the preceding four-week periods, supports upside to Street estimates of $65mn for 2H11. Launch metrics supplied by HGS gave us comfort that Benlysta is gaining momentum in the US, with all hospitals to date including Benlysta on formularies and Medicare reimbursement code being established on July 1. The only area of disappointment was pricing in Europe, ~$19k vs. $35k in US and below our $24k estimate. As a result, we are lowering our ex-US sales estimates and our price target to $31 from $36. We remain Overweight and expect shares to recover from recent lows as investors gain comfort on 2H sales." Shares of HGSI gained 13 cents yesterday to close at $23.22.