Alexza Pharmaceuticals (ALXA)

We are upgrading our rating on shares of Alexza Pharmaceuticals (ALXA - Analyst Report) to Outperform and raising our price target to $3 per share. We believe the company is on track to re-file the new drug application (NDA) on AZ-004 (Staccato loxapine) for the treatment of acute agitation in patients with schizophrenia or bipolar disorder by the end of July 2011.

Based on our analysis of the complete response letter (CRL) received on October 8, 2010, and our numerous conversations with management, we believe Alexza is adequately prepared to file a full response with an excellent chance to receive approval in January 2012.

We see multiple catalysts in 2011, including the NDA filing, an FDA panel review, and a potential deal for AZ-004 commercialization, prior to the FDA's decision in early 2012 as opportunities to drive the shares toward our target.

Alexza Pharmaceuticals (ALXA) : FULL ANALYST REPORT

Read the full analyst report on ALXA