Novartis "buy," target price reduced

02.04.07 - Deutsche Bank

LONDON, April 2 (newratings.com) - Analyst Mark Purcell of Deutsche Bank maintains his "buy" rating on Novartis (NOVN), while reducing his estimates for the company. The target price has been reduced from CHF85 to CHF82.

In a research note published this morning, the analyst mentions that the retrospective analysis of trials indicates a significant imbalance in the incidence of cardiovascular ischemic events in patients being treated with the company?s Zelnorm drug. Consequently, following the FDA?s request, Novartis has suspended the US marketing and sales of Zelnorm, the analyst says. The 2007-2010 sales estimate for Zelnorm has been reduced from $1.3 billion to $208 million. The EPS estimates for 2007-2010 have been reduced by 5%.