NPS Pharmaceuticals' (NASDAQ:NPSP) STEPS Success Would Give Strong Upside

Based on the probability of GATTEX Phase III success, Canaccord sees NPS Pharmaceuticals Inc. (NASDAQ:NPSP) getting a boost to $14 a share on that alone, and potentially much higher on pricing and expanded penetration.

Canaccord says, "Supported by our conviction in a successful STEPS Phase III trial, we remain buyers of NPSP shares ahead of data read-out expected later this quarter...Modeling GATTEX pricing at $65K per patient per year of chronic therapy and 15% penetration in 2015 supports our conservative $7 per share estimate contribution to our $11 price target. STEPS success would get us to $14 per share while higher pricing and penetration assumptions support significant upside potential."

Canaccord Genuity reiterates a "Buy" rating on NPS Pharmaceuticals Inc. (NPSP), which closed Wednesday at $7.59, dropping $0.64, or 7.78 percent. Canaccord has a price target of $11 on them.