QLT downgraded to "reduce"

02/12/07 - UBS

NEW YORK, February 12 (newratings.com) - Analysts at UBS downgrade QLT Inc (QLTI) from "neutral" to "reduce," while reducing their estimates for the company. The target price has been reduced from $9 to $8.

In a research note published this morning, the analysts mention that the downgrade in rating is based on valuation. QLT and partner Sanofi-Synthelabo have finalized a settlement with TAP Pharmaceuticals associated with the outstanding litigation of QLT's Eligard product, the analysts say. According to the terms of the deal, QLT and Sanofi-Synthelabo would pay $112.5 million and $45 million, respectively, to TAP Pharmaceuticals, UBS adds. The EPS estimate for 2007 has been reduced from $0.34 to -$0.61.