Oppenheimer Downgrading Teva Pharmaceutical

Oppenheimer & Co. is out with a research report on Teva Pharmaceutical

and is downgrading shares to Perform from Outperform, and removing the $65 price target. In a note to clients, Oppenheimer & Co. writes, "We are downgrading shares of TEVA from Outperform to Perform, and removing our price target, due to what we see as mounting headwinds and increasing uncertainty surrounding the company's MS franchise. Initial results of TEVA's Phase III BRAVO study showed the annual relapse rate reduction (

) associated with oral MS candidate Laquinimod was only statistically achieved (p=0.026), following a pre-specified adjustment, which we believe reduces the data's value. While the regulatory fate of Laquinimod remains uncertain, we are unaware of any precedent where an MS drug was approved without two statistically significant Phase III trials. If positive, competitive data from the CONFIRM study in 2H11 could negatively affect longer term Copaxone sustainability, which could further pressure TEVA shares." Shares of TEVA lost $2.88 yesterday to close at $43.76.