RBC keeps Noven at sector perform

Noven Pharmaceuticals Inc. was maintained by RBC Capital Markets analyst Ken Trbovich at sector perform, above average risk, with a raised price target of $19. The company had a significant earnings miss due to gross margin decline. The decline was the result of manufacturing inefficiencies during start-up, according to the analyst. Daytrana manufacturing revenues are expected to rise in the second half of the year but are dependent on gross margin improvement. While Noven believes Daytrana could reach $25 million in sales this year, the analyst believes prescriptions would need to grow 60% in August over July and then 20% per month through the end of the year. Shares of the Miami-based pharmaceutical company were down 28 cents, or 1.35%, at $20.51, on volume of 277,299 shares versus the three-month running average of 197,486 shares. (Nasdaq: NOVN)

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.