OSI Pharma's Recent Data Mixed

OSI Pharmaceuticals, Inc. (OSIP - Analyst Report), is a biotechnology company engaged in the discovery, development and commercialization of pharmaceutical products for the treatment of oncology, diabetes, and obesity in the U.S.

Tarceva sales continued to grow in both US and rest of the world in 3Q08 but at a declining rate. We believe Tarceva will achieve blockbuster status with over $1 billion in sales in 2008. We remain excited about the revenue from the company's DPP-IV estate. Additionally, the company's pipeline targets diseases like diabetes, obesity and cancer -- the very specific areas where OSI's strengths lie.

We are happy to hear about the positive data from SATURN trial, but disappointed with the negative data from the BETA trial. We maintain our Hold rating for OSIP with a price target of $36.

Read the full analyst report on OSIP