Brean Murray downgraded Encysive Pharmaceuticals (ENCY to hold from accumulate, citing the Food and Drug Administration's recent request for more clinical trial work researching the drug Thelin.
Analyst Jonathan Aschoff says the development was almost entirely unexpected by the Street. He believes it will send the company's shares down sharply Monday. Barring significant ambrisentan delays, he no longer believes Thelin will have any meaningful lead time to the market over its competitor ambrisentan. He says the companies will have to fight it out for market share on relatively equal ground.