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NEW YORK (AP) -- Shares of biotechnology company Medarex Inc. inched down in early trading Tuesday after an RBC Capital Markets analyst initiated coverage with an "Underperform" rating, saying investors may be disappointed by trial results for the company's melanoma drug candidate. Jason Kantor set a price target of $15 per share, just above Monday's closing price of $14.88. In the next few weeks, he said, the company will present results from the first of three late-stage trials of ipilimumab. Kantor said the most likely response rate for the drug is in the low end of a 8-to-10 percent range. Investors will find that somewhat disappointing, he said, and the current stock price indicates that they are expecting a response rate closer to 12 percent. "We recommend waiting for these results, and investing with greater knowledge of the safety and efficacy of Ipilimumab," he said. Shares fell 11 cents to $14.77. Five analysts rate Medarex shares "Buy" or the equivalent, and five assign a "Neutral" rating.
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