Macquarie 05-Sep-13 Macquarie has surveyed 381 endocrinologists globally about testosterone therapy. The findings showed a lack of affinity for Axiron and a lack of product differentiation. This raises concerns about further market share gains and price. Moreover, the doctors, on average, said that 31% of new patients gave up the therapy within six months of beginning treatment.
The broker has concerns about the broader market outlook given high patient lapse rates, low product differentiation and high relative attractiveness of potential new products. Earnings forecasts are adjusted downwards for FY14-16. The rating is downgraded to Underperform from Neutral. The price target is reduced to $3.00 from $3.50.
Downgrade to Underperform from Neutral
ACR Price at posting:
$3.07 Sentiment: Hold Disclosure: Held
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