Adams Harkness downgraded Emisphere Technologies (EMIS) to market perform from strong buy.
The drug maker says initial results from a study with for a oral heparin, prevention of blood clots in hip replacement surgery patients, did not demonstrate superiority to Aventis's Lovenox. Analyst Carol Werther says that a positive result from this study was central to her thesis, adding that her model was dependent upon oral liquid heparin sales beginning in 2004. Werther says it 's now unclear whether the company will go forward with its existing formulation or discontinue the program entirely. She doesn't think a Phase III oral liquid heparin trial will be conducted, and believes shares could trade down to cash or about $6.70 on Tuesday.