UPDATE: Wedbush Initiates Coverage On Achaogen On High Clinical Risk

In a report published Tuesday, Wedbush analyst Heather Behanna initiated coverage on Achaogen Inc (NASDAQ: AKAO) with a Neutral rating and $9.00 price target.

In the report, Wedbush noted, “We are initiating coverage with a NEUTRAL rating and $9 price target. Our price target is achieved by applying a 5x multiple on plazomicin peak US sales of ~$225M and a 15x multiple on plazomicin peak royalty revenue from EU sales. We apply a discount rate of 35% due to what we perceive as a high degree of clinical risk for the program.”

Achaogen closed on Tuesday at $10.41.