First Albany downgraded OrthoLogic (OLGC
) to neutral from buy, explaining that the drug developer's trial of the wrist fracture treatment Chrysalin has failed.
Analyst William Plovanic notes that company management expects to reevaluate its strategy going forward, including a full examination of another fracture study. The analyst believes commercialization of any product has been pushed off significantly. With no revenue in sight, he believes the stock will likely trade around its cash position of $2.20 per share.