The Street is pretty split on CV Therapeutics, Inc. (CVTX) right now. We are in the moderately positive camp, believing that Ranexa will eventually pick up steam after the label expansion(s). We remind investors, there are three separate applications here one for first-line angina, one for a potential anti-arrhythmic claim, and another for use in diabetics with coronary disease. The first-line angina sNDA and the anti-arrhythmic claim look solid in our view.
 
Outside of Ranexa, things are progressing nicely. The company exited the second quarter with $274 million in cash and investments. Add in the $70 million from the Menarini deal, and we now expect CVT to exit 2008 with just under $300 million still on the books. If the above applications all pan out, CVT has excellent turnaround potential.

The stock looks well supported at these levels, and the next few months will be pivotal for management. CVT could easily head to over $20 if things come together. Right now all we see is the potential that things come together, and that keeps us at a Hold rating. If that potential starts to turn into a certainty, we would recommend buying the stock. Our target is $14.

Read the full analyst report on CVTX

“CVTX” Free Stock Analysis: Buy? Sell? Hold?
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