UPDATE: MLV Raises Target to $10 on Curis

MLV maintains its Buy rating on Curis (NASDAQ: CRIS) and raises its price target to $10 from $8.50 a share as the company is looking to increase profitability sooner rather than later on approval of Erivedge from the FDA.

MLV comments, "Yesterday, Curis announced FDA approval of Erivedge™ (vismodegib) for the treatment of adults with advanced or metastatic basal cell carcinoma (aBCC). This approval is more than a month ahead of the PDUFA action date of March 8, 2012. ...On the basis of Erivedge's price, we now believe that Curis will achieve profitability sooner. Consequently, we have shortened our forecast time horizon, and our new valuation reflects a 25x P/E multiple on our 2013E EPS, discounted one year at 25%."

FDA closed at $4.75 a share on Monday.