WR Hambrecht downgraded Noven Pharmaceuticals (NOVN) to sell.
The FDA said says Noven's Methypatch for Hyperactivity is not approvable. Analyst Louis Webb says he downgraded to sell from buy, and set an $11 12-month target. He says the FDA has given MethyPatch a Non-Approval rating because of "clinical and other issues." He notes at present, the nature of the new drug application deficiency is unclear.
Webb thinks it may take a year or more to rectify the setback. He says in the meantime, Noven's female hormone replacement business, which has been weak, will be the sole earnings driver.