NPS Pharmaceuticals Shares Rise On Pipeline View

NEW YORK (AP) — Shares of NPS Pharmaceuticals Inc. rose as a Jefferies & Co. analyst boosted his rating on the company after it gave a positive update on two key late-stage drug programs and further partnership developments.

The stock gained 44 cents, or 9.9 percent, to reach $4.87 in midday trading. Shares have traded from $3.29 to $8.96 over the last 52 weeks.

The company is developing Gattex with Nycomed as a treatment for short bowel syndrome. The condition prevents patients from absorbing nutrients from food. Also, it is developing the hyperparathyroidism drug NPSP558. Both treatments are in late-stage development.

NPS is also partners with Amgen Inc. on the hyperparathyroidism drug Sensipar.

Jefferies analyst Dr. Marko Kozul, upgraded NPS' stock to "Buy" from "Hold" citing the pipeline developments. He lowered his price target though to $7 from $8.

"While fiscal year 2009 is a clinical execution year we believe (Wall) Street interest in NPS will grow due to stability of Sensipar royalty, late-stage pipeline studies, and cash to data readouts," he said, in a note to investors.