Anadys shares fall after downgrade to 'Hold' Anadys Pharmaceuticals shares fall after Roth Capital downgrades to 'Hold'
NEW YORK (AP) -- Shares of Anadys Pharmaceuticals Inc. fell Wednesday after a Roth Capital Partners analyst issued a downgrade, citing the company's plan for "strategic alternatives" for its key drug candidate.
THE SPARK: Analyst Edward Nash downgraded shares to "Hold" from "Buy" and cut his share price target to $2 from $5.
In May, Anadys retained Lazard Freres & Co. as a strategic adviser to help evaluate options the prospective hepatitis C treatment ANA598. Nash said the company's move leads him to believe that it is no closer to finding a partner for the drug candidate.
THE BIG PICTURE: ANA598 is part of the non-nucleoside class of drugs, which Nash said could be a difficult sell in a competitive market [agreed].
THE ANALYSIS: "We do not dismiss the merits of the drug's potency or the inability to overcome rash issues with additional treatment options, but the concern over the need of a non-nucleoside in the face of such potent other direct acting antivirals is a concern," Nash wrote in a note to clients. "Additionally, unlike HIV, which cannot be cured so other options will most likely be used at some point in treating patients, a higher percentage of patients are clearing virus, from recent studies, that could negate the need for a non-nucleoside regimen.
SHARE ACTION: Anadys stock slipped 10 cents, or 4.7 percent, to $2.01 in afternoon trading. Shares have traded between $1.44 and $3.32 over the last 52 weeks.