AstraZeneca downgraded to "neutral"

04/09/03 - SG Cowen

NEW YORK, April 9 (New Ratings) — Analysts at SG Cowen downgrade AstraZeneca from “buy” to “neutral.” The target price has been reduced from 2360p to 2200p.

Shares of AstraZeneca, a European pharmaceuticals company, are currently trading at 2232p.

According to SG Cowen’s research note, AstraZeneca’s premium over its peers has considerably dropped in comparison to its European peers. The analysts mention that several approval and competition risks have significantly affected the growth potential of AstraZeneca’s core products for the next few years. However, SG Cowen anticipates no major downside risks in 2003.

The analysts express caution regarding the delay in the US and European approval for Crestor’s new dosage and the persisting approval controversy over Iressa. SG Cowen also anticipates increased competition for the company’s drug, Nexium, from the generic Prilosec.

SG Cowen downgrades AstraZeneca from “buy” to “neutral.”