8:50 am Vanda Pharma initiated with a Buy at H.C. Wainwright; tgt $18
H.C. Wainwright initiates VNDA with a Buy and price target of $18. Firm thinks Vanda now has a solid base business with both Fanapt and Hetlioz having long exclusivity periods capable of taking the company back to profitability with even mild growth. They don't think any of the pipeline (primarily tradipitant) is priced in and hence, assuming success in clinical trials, could provide substantial upside. There are four important data readouts: (1) tradipitant P2 in pruritus in Q3; (2) tradipitant P2 in gastroparesis in 4Q; (3) Hetlioz P3 for jet lag in 4Q; and (4) Hetlioz P2/3 in Smith-Magenis Syndrome in 2018. But if firm is wrong, and tradipitant fails, they still calculate a $15 valuation without it; hence, they see little downside from current levels.
8:50 am Bristow Group downgraded to Market Perform at Cowen; tgt lowered to $7
Cowen downgrades BRS to Market Perform from Outperform and lowers their tgt to $7 from $14 following significant reduction to cash flow ests, which now have co consuming cash through FY20. Absent a meaningful recovery in offshore, firm sees continued cash consumption. On firm's updated ests, BRS will need to successfully defer capex and refinance/obtain new financing to support liquidity in FY20.