MGI Pharma downgraded to "sell"

11/12/07 - Brean Murray, Carret & Co

NEW YORK, November 12 (newratings.com) - Analysts at Brean Murray downgrade MGI Pharma (MOGN) from "hold" to "sell," while reducing their estimates for the company.

In a research note published this morning, the analysts mention that the company’s Dacogen drug is unlikely to show a survival benefit higher than or equal to that of Vidaza. The analysts do not expect MGI Pharma’s Aquavan drug to receive direct approval for a specific indication. The sales of the company’s Aloxi drug in the PONV indication are expected to be low, Brean Murray adds. MGI Pharma does not seem to be an attractive takeover candidate due to substantial risks associated with the company’s development programmes, the analysts state. The EPS estimates for 2007 and 2008 have been reduced from -$0.14 to -$0.16 and from $1.29 to $0.89, respectively.