) to hold, from buy.
Analyst David Steinberg says he's increasingly concerned over significant deceleration in prescription growth for Niaspan, which made up 84% of product sales in 2002, and an estimated 75% sales in 2003. Niaspan is a treatment of lipid disorders. While he says he expected slowing prescription growth, he didn't expect it to occur this rapidly, and place Kos' revenue estimates at risk.
Steinberg says he's somewhat concerned about slowing sequential prescription growth for Advicor. He cut the $214 million 2004 revenue estimate to $205 million, and cut the $172 million 2005 estimate to $153 million. Steinberg sees 8 cents second-quarter earnings per share, 65 cents for 2003, and 91 cents for 2004.