Oppenheimer Reiterates Its Underperform Rating On CADX

Oppenheimer is reiterating its Underperform rating on shares of Cadence Pharmaceuticals, Inc. CADX on expectations for a softer than expected OFIRMEV launch. “We anticipate consensus revenues for OFIRMEV will come down over 2011, pressuring shares,” Oppenheimer writes. “While CPIX's Caldolor (IV ibuprofen) is not a perfect comparator to OFIRMEV, we believe Caldolor's slow market adoption could provide insight into OFIRMEV's early launch trajectory. “We believe management's expectation for formulary access at 800-1,000 hospitals 12 months following approval could prove aggressive. We believe CADX shares could fall to $4-5 by YE11, with potential for an additional equity offering further pressuring shares.” Cadence Pharmaceuticals closed Tuesday at $7.66.