Please login to the form below

Not currently logged in
Email:
Password:

Goldman Sachs analysts reveal new ratings for Forest and BMS

Goldman Sachs analysts have revised ratings for Forest Laboratories and Bristol-Myers Squibb

Goldman Sachs analysts have changed recommendations to investors for US-based Forest Laboratories and Bristol-Myers Squibb (BMS).

One in-house analyst said that the fundamental challenges facing Forest are now reflected in the share price, adding that the long-term growth concerns over upcoming patent expirations for key products, coupled with uncertain pipeline catalysts, had prompted a rating change from "Sell" to "Neutral".

Since being added to Goldman's Sell list on 10 October 2007, Forest's shares had dropped 27 per cent, so the firm had lowered its 12-month price target USD 3 to USD 45 per share.

Positive risks to the price target and estimates from Goldman included unforeseen drug developments in the pipeline, improved sales performance and positive mergers and acquisitions developments.

In morning trading on 4 September 2007, Forest's shares rose 2.5 per cent to rest at USD 38.58.

In a separate evaluation, Goldman analysts said that BMS management had been successfully managing costs, diversifying the pipeline risk though partnerships and invest in the pipeline.

However, they added that BMS' patent gaps were 'substantial'. The firm's platelet anti-aggregant Plavix (clopidogrel) and blood pressure drug Avapro/Avalide (irbesartan) will both lose patent protection in 2017, and will degrade long-term growth.

Goldman analysts rated BMS as a "Sell" and the 12-month price target was set at USD 30. In early trading on 4 September 2007, shares in BMS fell 0.5 per cent to settle at USD 29.01.

5th September 2007

Share

PMEA Awards 2020

COVID-19 Updates and Daily News

Featured jobs

PMHub

Add my company
Onyx Health Ltd

Onyx Health is a healthcare communications and PR agency based in the North East of England, but with a national...

Latest intelligence

What’s in it for me? How to engage, motivate and support staff with internal training at OPEN Health
...
Environmental impact of in-person vs. virtual meetings
Although it will be tempting to resume in-person activities in the same capacity as before, we need to weigh the pros and cons of virtual vs. in-person vs. hybrid events...
US biosimilars
The US celebrates five years of biosimilars on the market – a look to the past, present and future
Why the success of biosimilars in the US has been mixed...

Infographics