Company

Bank

Analyst

Coverage

Opinion

Wk chg

11/22 cls

Aerie Pharmaceuticals Inc. (NASDAQ:AERI)

Canaccord

Ritu Baral

New

Buy

9%

$11.64

Baral initiated coverage with a $19 target, saying Aerie's AR-13324 has the potential to become "one of the most versatile drugs for open-angle glaucoma." In mid-2014, Aerie plans to start Phase III testing of AR-13324 to reduce intraocular pressure in patients with glaucoma or ocular hypertension. Baral noted that unlike existing glaucoma drugs, AR-13324 does not have systemic side effects and is dosed once daily. AR-13324 is a dual inhibitor of Rho kinase and the norepinephrine transporter. Aerie raised $77.3M in an IPO last month.

Biogen Idec Inc. (NASDAQ:BIIB)

BMO Capital Markets

Jim Birchenough

Price target

Market perform

17%

$285.62

Citi

Yaron Werber

Price target

Buy

Deutsche Bank

Robyn Karnauskas

Price target

Buy

Stifel Nicolaus Weisel

Joel Sendek

Price target

Buy

Birchenough raised his target to $286 from $249 after EMA's CHMP said Tecfidera dimethyl fumarate qualifies as a new active substance (NAS). In March, the committee recommended approval of an MAA for Tecfidera to treat adults with relapsing-remitting multiple sclerosis (RRMS), but the recommendation did not include NAS designation, which would entitle Biogen Idec to 10 years of regulatory exclusivity. Tecfidera is an oral dimethyl fumarate that activates the NF-E2-related factor 2 (Nrf2) pathway. Birchenough introduced EU estimates for Tecfidera sales of $950M in 2014 and $1.6B in 2015. He also raised his EPS estimates to $11.28 from $10.08 for 2014 and $13.30 from $11.26 for 2015. Biogen Idec launched Tecfidera in the U.S. in April (see B15).