upside

12

Buy - Price: $3.50 on July 14
by Needham

Dyax is developing DX-88 as a treatment for [hereditary angioedema, an inherited life-threatening inflammatory condition] and [bleeding during cardiothoracic surgery]. The company exploits its proprietary phage display technology to discover novel biotherapeutics both for internal development and for partnering. Dyax announced this morning that it has entered into an exclusive option agreement with Dompe for European Union rights to DX-88 in angioedema. Dompe purchased about two million Dyax shares at $4.98 a share and received exclusive negotiation rights until Sept. 30. We believe that the term of the agreement indicates that data from the ongoing Phase 3 trial of DX-88 (EDEMA4) are likely to be released in the third quarter. We are favorably inclined as to the outcome of EDEMA4, given the previous Phase 3 data and standard trial design. Dyax ended 1Q08 with approximately $62 million in cash, prior to expected receipt of $15 million and $10 million from recent...agreements. We believe the company has sufficient cash well into 2009. We believe Dyax shares are undervalued for a late-stage [biotech] company....We expect near-term DX-88 data from EDEMA4 [to be] a key catalyst and reiterate our Buy rating and $8 price target.

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just approved

botech play