Omnicare downgraded to "hold"

08/22/06 - Stifel Nicolaus

NEW YORK, August 22 (newratings.com) - Analysts at Stifel Nicolaus & Company downgrade Omnicare Inc (OCR) from "buy" to "hold."

In a research note published this morning, the analysts mention that the synergies expected in 2006 and 2007 from the Medicare pricing and Neighborcare integration are likely to be mitigated by legal settlements and unfavourable pricing. Omnicare has set aside $54 million for the Medicaid settlement with Life Care Centers of American, the analysts say.