CV Therapeutics Falls After Downgrade
Tuesday July 31, 11:14 am ET
Needham Analyst Downgrades CV Therapeutics to "Hold" As Ranexa Sales Disappoint
NEW YORK (AP) -- Shares of biopharmaceutical company CV Therapeutics Inc. fell Tuesday after an analyst downgraded the stock, saying second-quarter sales of its key drug, Ranexa, were disappointing.
CV Therapeutics reported its second-quarter earnings Monday, posting a smaller loss and greater sales than analysts expected. Sales of Ranexa, an angina drug, grew to $15.3 million, accounting for more than half of the company's total revenue.
Needham & Co. analyst Mark Monane expected the company to report $18 million in Ranexa sales, anticipating revenue would get a boost from safety data. He lowered his rating on the stock to "Hold" from "Buy."
"We note that Ranexa sales, although growing, are doing so at a slower rate," he said. "We believe the salesforce will face challenges through the remainder of 2007 as a result of the reorganization and staff reduction in May."
In May, the company said it would eliminate about 110 sales representative jobs, and combine its 250 sales territories into 140 territories.
Other analysts were more upbeat about Ranexa sales. George Zavoico of Cantor Fitzgerald said he expects prescriptions to keep increasing, although growth will be slower.
"Despite a reduction in CV Therapeutics' sales force and consolidation of territories, there has been little impact on Ranexa sales growth," he said. Zavoico kept a "Buy" rating and a $36 price target.
Shares sank 60 cents, or 5.5 percent, to $10.25.
biz.yahoo.com
CVTX plans to file an sNDA for Ranexa in 1st-line angina in Sept/Oct, based on additional evidence of the drug's safety in the MERLIN study which was conducted under an SPA. |
