4. Anadys Pharmaceuticals (ANDS) is a biopharmaceutical company developing drugs for the treatment of Hepatitis C virus (HCV) and oncology. The company recently said it is mulling options for its hepatitis C drug candidate ANA-598, retaining Lazard Freres as a strategic advisor. The stock is up 18% in 2010 and more than 25% over the last year.
Consensus: Ten analysts covering Anadys, or 76.9%, say investors should buy the stock, while three recommend holding it.
Closing Price: $2.49 (June 2)Bullish Case: ThinkEquity notes that Anadys management has "taken steps to position ANA598 to be transitioned to a partner through a licensing or outright acquisition" and the firm says it believes the company "is very optimistic about finding a home for ANA598 over the coming months." ThinkEquity has a buy rating and per-share fair value estimate on a risk-adjusted basis of approximately $7. Bearish Scenario: Wedbush analysts have a neutral rating on Anadys shares, questioning whether ANA598's profile will be attractive enough for a partnership. "A partnership or sale of the company is critical both from a development as well as a financing perspective," the firm wrote.