AstraZeneca downgraded to "sell" - update

10/19/07 - UBS

NEW YORK, October 19 (newratings.com) - Analysts at UBS downgrade AstraZeneca (AZN-GBX) from "neutral" to "sell." The target price has been reduced from 2,500p to 2,400p.

In a research note published this morning, the analysts mention that the consensus estimates do not reflect the failure of the company’s Symbicort in the EU and the prospects of Seroquel facing adverse FDA action over the drug’s substantial off-label use. The consensus estimates also need to be revised to reflect exposure of about 50%-60% of AstraZeneca’s EPS to generic launches after the expiry of the Hatch-Waxman (H-W) patents for Nexium, Seroquel and Pulmicort in 1H08, UBS adds.