Rodman & Renshaw on Synta Pharmaceuticals: "Ganetespib Demonstrates Preclinical Activity in Therapy Resistant Cancer at AACR" ($SNTA)

Synta Pharmaceuticals (SNTA) is a biopharmaceutical company focused on discovering, developing, and commercializing small molecule drugs to extend and enhance the lives of patients with severe medical conditions, including cancer and chronic inflammatory diseases. Synta has a unique chemical compound library, an integrated discovery engine, and a diverse pipeline of internally-developed drug candidates targeting large therapeutic markets in clinical and preclinical development. 

Rodman & Renshaw has issued a report on Synta, giving it a "Market Outperform" rating and an $8 price target. 

The report states,

"Although the data presented by the company at AACRprovide compelling potential development paths for ganetespib down theline, in our view these data will have minimal impact on SNTA sharesover the coming months. Rather, SNTA’s valuation is derived primarilyfrom ongoing clinical trials of ganetespib in lung cancer. In our view, asresults from the Phase IIb portion of the GALAXY trial and the separateALK+ study become available, SNTA shares will migrate higher fromtheir current levels of ~$230MM to a market cap 2-3 fold higher."

See the full report here.