Jefferies Reiterating Buy On Optimer Pharm. (OPTR)

Jefferies & Co. is reiterating its Buy rating and $17 price target on shares of Optimer Pharm. OPTR. In a note to clients, Jefferies writes, "For lead drug fidaxomicin, FDA's AdComm panel and PDUFA date are set for April 5 and May 30, respectively. While the Street sentiment is optimistic, we view potential upside likely to continue particularly from its current inexpensive valuation (estimated current EV of <$400M). The Street is optimistic about the upcoming AdComm panel (4/5/11), but somewhat cautious about a commercial launch; however, at its inexpensive current valuation, we expect potential incremental upside likely to continue. OPTR has achieved several key milestones for fidaxomicin in recent months - (1) priority review by the FDA; (2) publication of first Ph3 in prestigious journal The New England Journal of Medicine (NEJM); and (3) ex-U.S. partnership with Astellas. Yet, the Street's expectations for OPTR are modest at best (reflected in current valuation); thus, there lies an opportunity. We view our fidaxomicin peak WW annual sales potential of ~$250M as easily achievable (vs. current Vancocin annual sales runrate of ~$260M in the U.S. alone)." Shares of OPTR lost 19 cents yesterday to close at $12.35, a loss of 1.5%.