Canaccord Genuity Maintains a 'Hold' on Labopharm; All Options Open: DDSS Updates Strategic Review Process
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Price: $0.14 --0%
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 16 | New: 9
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 16 | New: 9
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Canaccord Genuity maintains a 'Hold' on Labopharm (NASDAQ: DDSS), lowers target to C$0.55 from C$0.85.
Canaccord analyst says, "Management’s update on the strategic review process heightens our concerns about Oleptro. Prescription trends for the antidepressant continue to be weak, and we believe the proposed restructuring of its agreement with Angelini signals that efforts to reverse this trend have, thus far, borne little fruit. We have therefore lowered our longer-term estimates for Oleptro in the US (peak sales are now projected to be US$52 million, lowered from US$80 million) and are taking an even more cautious view pending the outcome of the review process."
"While Labopharm now has the opportunity to identify new value-creating strategies for some of its assets, we grow increasingly concerned about near-term capital requirements and the erosion of its economic interest in the US JV for Oleptro. We believe that the JV structure as it exists now may provide additional value for the company if the drug is eventually even modestly successful."
For more ratings news on Labopharm click here and for the rating history of Labopharm click here.
Shares of Labopharm closed at $0.48 yesterday.
Canaccord analyst says, "Management’s update on the strategic review process heightens our concerns about Oleptro. Prescription trends for the antidepressant continue to be weak, and we believe the proposed restructuring of its agreement with Angelini signals that efforts to reverse this trend have, thus far, borne little fruit. We have therefore lowered our longer-term estimates for Oleptro in the US (peak sales are now projected to be US$52 million, lowered from US$80 million) and are taking an even more cautious view pending the outcome of the review process."
"While Labopharm now has the opportunity to identify new value-creating strategies for some of its assets, we grow increasingly concerned about near-term capital requirements and the erosion of its economic interest in the US JV for Oleptro. We believe that the JV structure as it exists now may provide additional value for the company if the drug is eventually even modestly successful."
For more ratings news on Labopharm click here and for the rating history of Labopharm click here.
Shares of Labopharm closed at $0.48 yesterday.
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