Wedbush Has $8.50 Target On CARDIOME PHARMA (CRME)

Wedbush Equity Research has an $8.50 price target on shares of CARDIOME PHARMA CORP CRME and an Outperform rating on shares. In the research note, Wedbush writes, "While last week's announcement provided some positive momentum for CRME, we believe that investors will be most receptive to confirmation from Merck itself that the Phase III program remains “on track.” To begin with, Merck has historically been relatively silent (and thus inscrutable) on this topic, and any mention of progress will be viewed as a deliberate signal to the market of Merck's ongoing commitment. Moveover, given Merck's widely viewed status as the most likely potential acquirer of CRME, this commitment will also be viewed as reinvigorating Cardiome's likelihood of take-out. On the other hand, however, Merck's failure to mention any progress with respect to vernakalant will likely be seen as a severe blow to CRME's prospects (whether accurate or not). Finally, on another topic, we are also awaiting details from the company on potential resumption of the Phase III intravenous vernakalant program, with an update on discussions with the FDA expected by the end of the month. Wedbush goes on to say, "Our fair value of $8.50 per share is calculated using a sum-of-parts analysis, applying a 30% annual discount to our 2014-2018 annual sales estimates for vernakalant in atrial fibrillation, employing a 1-10x multiple based on the stage of development. In light of expected near-term progress expected in vernakalant's clinical development in both the intravenous and oral programs, we strongly encourage investors to consider CRME in the near-term." Shares of CRME are off 3 cents to $6.26.