Legg Mason initiated coverage on Hollis-Eden Pharmaceuticals (HEPH) with sell.
Analyst Edward Nash says if the company is unable to secure a government contract for its lead product candidate Neumune (HE2100) -- a radioprotectant in development through a collaborative research agreement with the government -- shares will be negatively affected. He says, with the exception of Neumune, the company's pipeline is in an extremely early stage; he doesn't think Hollis-Eden will realize any revenue in the near future for product candidates.
Nash says Hollis-Eden trades at a 216% premium to the median technology value of peers. He set a $10 target, and sees a $1.35 2003 loss per share.