Robert W. Baird Cuts SFBC to Neutral from Outperform

Cites increasing lack of confidence in the company following a Bloomberg report that SFBC allowed an infected patient into a trial

Robert W. Baird cut its rating on SFBC International(SFCC ) to neutral from outperform, explaining that "material risks have emerged" at the drug development company.

Bloomberg claims to have uncovered evidence that SFBC mishandled a trial in Montreal, allowing a TB-infected patient to inappropriately enter a trial and infect others, among other things.

Analyst Eric Coldwell says that new information gleaned during a recent conference call was "disconcerting." He identified several new misstatements from management that further shake his confidence in the company. He also believes SFBC inappropriately treated patients in Miami.

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