UPDATE: JMP Securities Initiates Coverage On Parnell Pharmaceuticals On Compelling Investment Opportunity

In a report published Monday, JMP Securities analyst J.T. Haresco initiated coverage on Parnell Pharmaceuticals Holdings Ltd. (NASDAQ: PARN) with a Market Outperform rating and $12.00 price target.

In the report, JMP Securities noted, “Parnell is a fully integrated pharmaceutical company headquartered in Australia, focused on developing, manufacturing, and commercializing innovative animal health solutions. The company currently has five products marketed in 14 countries. On 6/18/14, Parnell completed its IPO, issuing 5.0M shares of common stock at $10.00/share, resulting in net proceeds of $50M.

"We believe the company offers a compelling investment opportunity because: 1) it is poised to benefit from the attractive growth of the pet industry; 2) ZYDAX®, a disease-modifying osteoarthritis drug, does not have a direct competitor; 3) Parnell's lead reproductive products, estroPLAN and GONAbreed were the first hormones to be FDA approved for estrous synchronization in dairy cows; 4) Parnell introduces a novel commercial model by combining therapeutics with a service-oriented strategy for disease and herd management; 5) the company's strategy carries less regulatory and commercial risk than human therapeutic development; 6) the company has a pipeline of unique products that targets unmet needs in the pet and large animal health market; and 7) the management team has substantial experience in the field of companion and large animal therapeutic development.”

Parnell Pharmaceuticals Holdings Ltd. closed on Friday at $6.85.