Probably the Thopmas Weisel analyst downgraded because the launch had a cloud over it. I've mentioned this before, in May:
Message 18981516
The cloud has now begun to drizzle on AFFX. This snippet is a teaser from today's edition of GenomeWeb's BioArray News, which requires a paid subscription for the complete dope:
>>FDA Ends Roche's Aspirations for Marketing its AmpliChip CYP450 Microarray as an ASR
The Roche Molecular Diagnostics' microarray, the AmpliChip CYP450 may not enter the market without an agency premarket approval, the US Food and Drug Administration said this week...<<
The FDA is apparently firm now in its decision to classify the AmpliChip as a Class 2 or 3 medical device, which means it has to jump some regulatory hurdles before it can be sold. This is going to delay sales and that is why AFFX is off today.
This was one reason the Biotech Short Candidate Portfolio maintained its position in AFFX, though in hindsight, given the unexpected strength in AFFX's new product cycle -- aside from the AmpliChip -- it should have cashed in after the first miss this spring. BSCP still is in the black on the short, but only barely. Once this dynamic is priced in, and perhaps after a general market pullback, AFFX could give a good buying opportunity, IMO; I'm guessing low 20s.
Cheers, Tuck |
