Commerce Capital downgraded Cambrex (CBM ) to market perform.
Analyst Christopher Crooks says he downgraded after the provider of services to the life sciences industry cut the 2003 guidance, and said it decided to enter into a settlement and indemnity agreement with Mylan Labs for current and future claims.
He notes Cambrex now forecasts 2003 earnings per share of $1.05-$1.25, including a special charge for the settlement; excluding the charge, the company sees earnings per share of $1.37-$1.57. As such, he cut his $2.10 2003 earnings per share from operations estimate to $1.40. He says his downgrade will stand until he gets a better sense of fundamental improvement. Also, Crooks notes Cambrex reduced the 2003 revenue guidance for both its biosciences and human health segments.