J.P. Morgan Raises PT On VRUS To $200

J.P. Morgan has raised its price target on Pharmasset VRUS from $100 to $200 in light of “Biotech Week”Day 2 and portfolio analysis of the stock. According to J.P. Morgan, “[The change in price target] is based on consistent positive feedback from the Hep C arena and building momentum for the nuc class following the EASL meeting. We expect this momentum to continue, driven by significant data flow over the next 1-2 years. Importantly, we anticipate that by YE11 almost 500 Hep C patients will have been exposed to PSI-7977 for 12 weeks, which given aggressive clinical development plans may increase to more than 700 patients by YE 12. This should significantly de-risk the asset from a safety and efficacy perspective, in our view. Based on our growing optimism for the nuc class (particularly PSI-7977 and PSI- 938) and significant de-risking of PSI-7977 ahead, we are rolling our PT forward and establishing a YE12 PT of $200 (previously $100 YE11). This is based on increased outer year sales expectations (greater for ‘7977 and addition of ‘938) and a lower risk profile overall. In our view, the scarcity value of having wholly owned assets in Hep C and solid phase 2b clinical data bodes well for continued upside in VRUS shares.” J.P. Morgan maintains an Overweight rating on the stock. VRUS closed yesterday at $98.42.