UPDATE: J.P. Morgan Initiates Keryx Biopharmaceuticals at Overweight on Increasing Comfort With Key Controversies

In a report published on Wednesday, J.P. Morgan analyst Cory Kasimov initiated coverage on Keryx Biopharmaceuticals (NASDAQ: KERX) with a rating of Overweight and a price target of $13.

In the report, J.P. Morgan stated, "We are initiating coverage of Keryx Biopharmaceuticals...based on the potential of Zerenex, its first-in-class, oral drug candidate for the treatment of hyperphosphatemia (elevated serum phosphorus) in dialysis patients...Given its ability to also help treat anemia, we think pharmacoeconomic advantages of Zerenex could drive rapid uptake in the price sensitive end stage renal disease (ESRD) market. A few key issues have weighed on the stock post positive Phase 3 data, but we have taken a deep dive (see “Key Controversies” on p. 7-14) and are increasingly comfortable with each item (namely IP and iron overload). CKD also represents a compelling follow-on opportunity and potential near-term catalyst."

Keryx Biopharmaceuticals closed on Tuesday at $7.66.