UPDATE: Piper Jaffray Initiates Coverage on Alexza Pharmaceuticals to Neutral Rating, $5 PT

In a report published Friday, Piper Jaffray & Co. initiated coverage on Alexza Pharmaceuticals (NASDAQ: ALXA) with a Neutral rating and $5.00 price target.

Piper Jaffray noted, “We are initiating coverage on Alexza with a Neutral rating and 12-month price target of $5. Alexza reformulates drugs for pulmonary delivery with its novel device, Staccato, that enables rapid absorption. For recently approved Adasuve (Staccato loxapine for agitation), we anticipate a U.S. partner in 1H13 and launch by 3Q13, and European approval in 1Q13. While we view Adasuve to be a value-added offering, uncertainty of limitations on settings for use, as well as timing, put us on the sidelines until we see more granularity on marketing initiatives to combat commercial hurdles or next steps with the pipeline. In the interim, we have established a placemarker sum of the parts valuation of $2.50/share for Adasuve and assigned $2.50/share for the Staccato platform.”

Alexza Pharmaceuticals closed on Thursday at $4.96.