Company

Bank

Analyst

Coverage

Opinion

Wk chg

5/11 cls

AMAG Pharmaceuticals Inc. (NASDAQ:AMAG)

Baird

Christopher Raymond

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Neutral (from outperform)

-16%

$13.25

Ladenburg Thalmann

Juan Sanchez

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Neutral (from buy)

Raymond also lowered his target to $17 from $21 after AMAG named William Heiden as the permanent CEO and announced a shift in focus from selling the company to looking to buy assets to complement anemia drug Feraheme ferumoxytol (see B8). While Raymond is "intrigued" by the new direction, he says the shift introduces new elements of risks and uncertainty. He said he lacks conviction that AMAG's management can "flawlessly execute." In November, the company said it would restructure and evaluate strategic options, including a sale, merger, acquisition or licensing deal (see BioCentury, Nov. 21, 2011).

Sanchez also removed his target on AMAG's announcement, saying his previous rating was partially justified by expectations of a potential acquisition.

Arena Pharmaceuticals Inc. (NASDAQ:ARNA)

Jefferies

Thomas Wei

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Buy (from underperform)

146%

$6.36

Leerink

Steve Yoo

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Outperform (from market perform)

Piper Jaffray

Edward Tenthoff

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Overweight (from neutral)

Wei also raised his target to $9 from $1 after FDA's Endocrinologic and Metabolic Drugs Advisory Committee voted 18-4, with one abstention, that the benefit-risk profile for Arena's lorcaserin from supports approval to treat obesity (see Cover Story). He increased the probability of regulatory success to 95% from 33% for the serotonin (5-HT2C) receptor agonist, which is partnered with Eisai Co. Ltd. (Tokyo:4523; Osaka:4523). The PDUFA date is June 27.

Yoo also raised his target to $9-$11 from $2-$2.50 on the FDA panel news.