Piper Jaffray Reiterates Overweight on Clinical Data (CLDA)

Piper Jaffray reiterates its Overweight rating on Clinical Data (NASDAQ: CLDA) following CLDA's sale of its cardiac diagnostic testing business.

In a note to clients, Piper Jaffray writes, "Clinical Data is selling its cardiac diagnostic testing business, Familion, to Transgenomic for $15.4 million. The move was expected following an announcement earlier this month it was seeking buyers. We view this move to monetize a non core asset as a positive as it reduces the company's funding needs ahead of a potential vilazodone launch next year. We continue to be buyers of CLDA shares ahead of a potential vilazodone approval by its January 22, 2011 PDUFA."

CLDA closed Monday at $18.92.