MLV Maintains Buy, $4 Target on Zalicus Post Settlement

MLV reiterates its Buy rating and $4 target price on Zalicus (NASDAQ: ZLCS) as a lawsuit settlement involving Exalgo allows company to market generic version six months in advance of plans.

MLV says, "In the settlement, Watson Pharmaceuticals will be permitted to launch certain dosage forms of a generic version of Exalgo in November 2013, just over 6 months ahead of patent expiry in July 2014. By that time, we do not expect an earlier generic launch will substantially impact Zalicus' collaboration revenue as we expect the company will have new revenue generating agreements in place for its other drug candidates."

ZLCS closed at $1,15 a share on Tuesday.