WR Hambrecht downgraded Noven Pharmaceuticals (NOVN ) to sell.
The FDA said says Noven's Methypatch for Hyperactivity is not approvable. Analyst Louis Webb says he downgraded to sell from buy, and set an $11 12-month target. He says the FDA has given MethyPatch a Non-Approval rating because of "clinical and other issues." He notes at present, the nature of the new drug application deficiency is unclear.
Webb thinks it may take a year or more to rectify the setback. He says in the meantime, Noven's female hormone replacement business, which has been weak, will be the sole earnings driver.