MGI Pharma downgraded to "market perform" - update

09/28/05 - Piper Jaffray

NEW YORK, September 28 (newratings.com) - Analysts at Piper Jaffray downgrade MGI Pharma Inc (MOGN) from "outperform" to "market perform," while reducing their estimates for the company. The target price has been reduced from $30 to $25.

In a research note published this morning, the analysts mention that the FY05 sales estimate for Aloxi has been reduced from $260 million to $250 million. The analysts expect Dacogen to receive the FDA approval in 2Q06. The EPS estimates for 2005 and 2006 have been reduced from $0.27 to $0.20 and from $0.59 to $0.40, respectively.