Pharmaxis has finally had Bronchitol approved for the PBS list and while the Australian market is small the news is important for confidence with respect to reimbursed global sales.
A European Commission sign-off will be the next catalyst for the stock and BA-ML sees this happening in coming weeks. The broker retains a Buy rating on the stock.
Sector: Pharmaceuticals, Biotechnology and Life Sciences.
Target price is $2.53.Current Price is $1.18. Difference: $1.35 – (brackets indicate current price is over target). If PXS meets the BA-Merrill Lynch target it will return approximately 53% (excluding dividends, fees and charges – negative figures indicate an expected loss).