Nile Therapeutics, Inc. – Bull of the Day
Nile Therapeutics, Inc. (NLTX) is developing CD-NP, a chimeric natriuretic peptide currently in phase II clinical studies for the treatment of acute decompensated heart failure (ADHF). Prior phase I and phase II data so far has been highly encouraging. With a market capitalization of only $14 million, Nile Therapeutics shares are bafflingly under-valued.
We believe with positive data from the ongoing phase II
program in hand the company is worth at least $80 to 100
million. Taking the mid-range at $90 million, and then backing
out the $20 million most likely required to fund the phase IIb
program, we arrive at a value of $70 million for Nile
Therapeutics. This equates to a price of $2.00 per share.
Zacks Investment Research
August 20, 2010 | Filed Under Stock Picks
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