) to neutral from buy.
Analyst Darren Mac says he thinks the current stock price fully reflects a positive FDA panel meeting, and sees the ultimate approval of Raptiva for treating psoriasis. Mac views the recent run-up in the stock as an opportunity to reduce holdings. He still expects the FDA advisory panel to recommend the approval of Raptiva when it meets Sept. 9.
Mac notes clinical data support the long-term safety and efficacy of Raptiva. He says the company has enough cash and equivalents to last into the fourth-quarter of 2004. Due to a lower level of collaborative revenue in the second quarter, he widened the 63-cent 2003 loss per share estimate to a 68-cent loss per share. Mac sees a 48-cent 2004 loss per share.