CIBC World downgraded CV Therapeutics (CVTX) to sector perform.
Analyst Matthew Geller says he's downgrading from sector outperform due to the delay in FDA approval for Ranexa, the company's angina treatment. He notes the FDA said, in a letter to the company, that it was positive on the efficacy of the drug, but indicated additional clinical information is needed.
Geller says he spoke with CV Therapeutics, which said the FDA would like to see additional trial(s) demonstrating safety and a positive risk/benefit ratio. He believes should additional trials be needed, and are successful, Ranexa's approval would most likely be delayed by about 18 months. Geller widened the $3.30 2004 loss estimate to a $3.83 loss.