Pacific Growth Downgrades Corixa to 'Neutral'
Pacific Growth downgraded Corixa (CRXA ) to neutral from buy.
The FDA says the company must provide additional information concerning the safety and efficacy of Baxxar, an experimental treatment for non-Hodgkin's lymphoma. Analyst Tom Dietz says Corixa and its partner, GlaxoSmithKline, have four options at this point: 1) Amend the drug application within 10 days with new data; 2) Notify the FDA within 10 days of their intent to amend application with new data; 3) Request an opportunity for hearing on whether there are grounds for denying approval of application; 4) Withdraw the application. Amid uncertainty over what the companies will do, he downgraded Corixa and suspended its financial estimates. Dietz sees Corixa's stock underperforming the market in the near term.