Zacks senior pharmaceutical industry analyst Grant Zeng, CFA had issued a Hold recommendation earlier to life sciences company Monogram Biosciences, Inc. (MGRM), which he maintains in his latest report. Here we excerpt certain parts from his report:

'Monogram Biosciences is a life sciences company, engaged in the development and commercialization of molecular diagnostic products focusing on infectious diseases, cancer, and other diseases. We are optimistic about its HIV test products and the potential of its VeraTag Assay for cancer test. The company stands to benefit meaningfully from the launch of Pfizer's (PFE) Maraviroc in both the U.S. and the European markets.

'Although revenue growth declined dramatically in the second half of 2006, we believe revenue will pick up momentum now that Pfizer's Maraviroc is approved in the U.S. and the E.U. The company has commenced with the launch of the Trofile assay to coincide with the launch of Maraviroc in those markets. Going forward, we expect the company to post impressive top-line growth.

'The launch of the first VeraTag assay for testing cancer should further boost the company's revenues 2008 onwards. However, we would like to see the company effectively managing its top- and bottom-line growth before we recommend the shares. We maintain our Hold rating on Monogram Biosciences shares with a target price of $1.60.

'We believe the company's shares are fairly valued at the current level. We arrive at our target price by using a P/S multiple of 5.5x multiplied by our estimated 2010 product sales of $222.4 million, discounted at 25 per cent for three years. Our model assumes 135 million shares outstanding in 2010.'