Novartis downgraded to "add"

14.11.07 - Dresdner Kleinwort Wasser.

LONDON, November 14 (newratings.com) - Analysts at Dresdner Kleinwort downgrade Novartis AG (NOVN) from "buy" to "add." The target price has been reduced from CHF76 to CHF63.

In a research note published this morning, the analysts mention that news from the company so far this year has been mixed, with approvals for Exforge, Tekturna and Aclasta being accompanied by the withdrawal of Zelnorm and a delay in Galvus. There are new concerns emerging with the 100mg per day dose of Galvus, the analysts add. Although Novartis? margins are expected to be under pressure in 1H08, they are likely to begin improving from mid-2008 onwards, according to Dresdner Kleinwort.