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Wall Street Hates These 2 Biotechs

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January 17, 2013 | Comments (4)

Brean Capital has come out today with a pair of substantial downgrades. First, it has downgraded VIVUS (NASDAQ: VVUS  ) , maker of the obesity drug Qsymia, to a sell, and set the price target at a painful $7 per share. This is a 50% downside from yesterday's $14.32; the stock fell 5% as a result. Brean also downgraded Celsion (NASDAQ: CLSN  ) to a sell, placing the price target at an astonishing $1 per share. Celsion is also down over 5% on the news. In this video, Motley Fool health-care analyst David Williamson tells us what was behind these killer downgrades, and whether investors should be worried.

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David Williamson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (4) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 17, 2013, at 5:01 PM, djohn1969 wrote:

    The Street loves Celsion ... one clueless analyst at one of the most useless research firms on The Street hates Celsion. Just look at the idiot's track record.

  • Report this Comment On January 17, 2013, at 5:20 PM, Hope4GoodFuture wrote:

    Mr. Williamson,

    I'm not sure exactly what you view your job to be? It would be nice if, from time to time, you do a little more than simply regurgitate what other people have said. Simply restating what Brean Capital said doesn't add much value, unless people use Motley Fool as their sole source of news (Brean Capital's downgrade was all over the press today). What may have been helpful would have been some insight or analysis. For example, why did Brean Capital have a BUY rating on CLSN with a target of $7 up until today, and suddenly switch to a SELL rating with a target of $1 ? At $7 BUY, CLSN was a binary event company with PFS as its endpoint. Nothing has changed since Brean set this price target. It would have been nice if you had pointed this out. Was Brean right before and wrong now, or right now and wrong before? Either way, doesn't Brean have some explaining to do? Did the analyst have a bad dream, or a moment of Zen? What is the role of an analyst that is widely reported and potentially market moving? What standards should they be held up to? Did this analyst adhere to any standard? There is a story here, but not the one you "reported".

  • Report this Comment On January 17, 2013, at 5:47 PM, earthunit wrote:

    LOL. "Wall Street hates these two." Or, your crony buddies hate losing money on their short positions on these two? I'll pick the second choice.

    Hey man, get a real job. Try doing something constructive.

  • Report this Comment On January 17, 2013, at 7:49 PM, hsawaknow wrote:

    @ hope4goodfuture

    I assertively second that...

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Related Tickers

5/24/2013 4:00 PM
VVUS $14.82 Up +0.32 +2.21%
VIVUS, Inc. CAPS Rating: **
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OREX $6.45 Down -0.03 -0.46%
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