Novartis "neutral," target price reduced

06/13/07 - Credit Suisse

LONDON, June 13 (newratings.com) - Analyst S Plag of Credit Suisse maintains his "neutral" rating on Novartis AG (NOT), while reducing his estimates for the company. The target price has been reduced from CHF70 to CHF67.

In a research note published this morning, the analyst mentions that a District Court in the US has refused to stop Teva from selling a generic version of Novartis’ Lotrel drug. The market for branded Lotrel is likely to contract rapidly, particularly in view of Teva immediately resuming its supply and Novartis launching its own generic version of Lotrel in the US, the analyst says. The EPS estimates for 2007 and 2008 have been reduced from $3.40 to $3.31 and from $3.69 to $3.50, respectively.