AstraZeneca downgraded to "sell"

01/13/06 - Dresdner Kleinwort Wasser.

LONDON, January 13 (newratings.com) - Analysts at Dresdner Kleinwort Wasserstein downgrade AstraZeneca (AZN-GBX) from "reduce" to "sell." The target price has been raised from 2300p to 2400p.

In a research note published this morning, the analysts mention that the company's share price is being driven by takeover speculations. Chances of AstraZeneca receiving a takeover bid is less than 50%, the analysts say. The sales of the company's Nexium and Crestor drugs would be adversely affected by the new Medicare Part D and generic competition, the analysts say. The company's product pipeline is weak at present, Dresdner Kleinwort Wasserstein adds.