We are initiating coverage of Inhibitex (INHX) with a ‘Neutral’ rating and $2 price target. Our neutral rating stems from the very early-stage nature of the company’s pipeline -- leading candidate FV-100 is currently in phase II testing -- and the potential dilution risk coming from cash-raising activities later in 2009 or in 2010. Nevertheless, Inhibitex does have significant long-term upside potential based on the outcome of the ongoing phase II program for FV-100 and the movement of INH-189 into a phase I program. Data from the phase II FV-100 program is expected around the middle of 2010.  Data from a phase I proof-of-concept program on INH-189 is expected late 2010 / early 2011. Potential catalysts for the stock also include phase II or partnership news on Pharmasset’s PSI-7851 or Idenix’ IDX-184 phase II HCV phosphoramidate candidates. FV-100 a Game-Changer Inhibitex's lead development candidate, FV-100, ...

San Diego-based biopharmaceutical company Anadys Pharmaceuticals Inc. (ANDS) is expected to release its second-quarter earnings on July 30, 2009. We expect the company to post a net loss of $6.9 million. Basic and diluted net loss per common share is expected to be $0.22. The company is still in the development stage, with products unlikely to hit the market in the next few years and therefore has no revenue. Therefore, we feel that the earnings report is a non-event for Anadys. Investors are more concerned about its cash position and its clinical program developments.  The cash position is indeed a matter of concern. Anadys exited the first quarter of 2009 with a cash balance of $20.8 million, inclusive of marketable securities, which will last only two to three quarters. With a view to conserve cash, the company recently announced a strategic restructuring to focus its operations ...

HGSI: NDA for Albuferon Expected to be Filed This FallWaiting for 2 Phase III Results for BenlystaNDA filing for Albuferon is expected in the fall for Hepatitis C      Albuferon is a novel long-acting form of interferon alpha. Recombinant interferon alpha is approved for the treatment of hepatitis C, hepatitis B and a broad range of cancers. Human Genome Sciences Inc. (HGSI) modified interferon alpha to improve its pharmacological properties by using its albumin fusion technology.HGSI has an exclusive worldwide agreement with Novartis (NVS) for the development and commercialization of Albuferon. The two companies are developing Albuferon as a potential treatment for chronic hepatitis C (HCV). Under this agreement, ...