Even as Neurochem Inc. shares scrape bottom, Loewen Ondaatje McCutcheon analyst Nigel deGruyther has raised the stock to "buy" from "hold," saying he is now valuing the drug developer as if it were "generating Phase II data that is supportive of further investigation as a Phase III drug." Using April, 2005, as a comparable period in Neurochem's development, and adopting the technology value from that period and applying it to the current capital structure, he arrives at a price target of $6.50, prompting the upgrade. Whether Neurochem conducts further Phase III research is unknown because it has disclosed that its flagship Alzhemed drug failed to show a statistically significant benefit to Alzheimer's disease patients in a pivotal Phase III North American study. The stock has tumbled 40 per cent to $3.51 on the TSX Monday afternoon after reaching a 52-week low of $3.43 earlier in the session.