Deutsche Reiterates Sell on Biogen Idec

Analyst Jennifer Chao says there won't be any meaningful updates on regulatory review of the pharmaceutical company's drug Tysabri

Deutsche Bank reiterates sell on Biogen Idec (BIIB ) and cuts target.

Analyst Jennifer Chao estimates it could take several months just to compile and sift through patient data, complete challenging technical/statistical analysis, all of which are subject to careful regulatory review.

Given the complex nature of the review, she doesn't expect meaningful updates in the near- to medium-term. She recommends investors stay on sidelines until visibility on Tysabri justifies signficant risks.

Chao cuts her $38 target to $33, 19 times $1.73 2006 earnings per share. She believes her 19 multiple is justified as uncertainty related to Tysabri could cause Biogen Idec shares to languish.

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