Company

Bank

Analyst

Coverage

Opinion

Wk chg

11/4 cls

Active Biotech AB (SSE:ACTI)

Jefferies

Peter Welford

Downgrade

Hold (from buy)

-34%

SEK19.40

Welford also lowered his target to SEK20 from SEK100 after partner Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA) said it would be "premature" to submit an NDA at this time for laquinimod to treat relapsing-remitting multiple sclerosis (RRMS) (see B10). Teva, which said it will work with FDA to design an additional trial for the quinoline-3-carboxamide immunomodulator, had planned to submit an NDA early next year. In August, laquinimod missed the primary endpoint in the Phase III BRAVO trial to treat RRMS (see BioCentury, Aug. 8).

Cardiome Pharma Corp. (TSX:COM; NASDAQ:CRME)

Bloom Burton

Philippa Flint

Downgrade

Sell (from hold)

-22%

$2.77

Flint also lowered her target to $3.50 from $6 on news that partner Merck & Co. Inc. (NYSE:MRK) will perform another Phase I trial of oral vernakalant to treat atrial fibrillation and start Phase II in late 2012. Merck markets an IV formulation of the mixed ion channel antagonist in Europe under the name Brinavesse.

Charles River Laboratories International Inc. (NYSE:CRL)

Leerink

John Sullivan

Price target

Market perform

-14%

$28.99

Sullivan lowered his target to $32-$34 from $37-$39, saying the tool supplier "continues to face headwinds" in its preclinical services (PCS) business. Charles River reported a 9% decline in 3Q11 PCS revenue, which Sullivan attributed to continued "soft demand" from large pharma clients and bookings heavily weighted towards short-term and less complex studies. Sullivan also noted the company plans to reduce headcount by about 2% this quarter, mainly in the PCS segment. He estimates an annual cost savings of about $7.5M (see "EPS Watch," A17).