UPDATE: Stifel Nicolaus Downgrades Idenix to Sell

Stifel Nicolaus lowers its rating on Idenix

to Sell from Hold as data does not support lofty expectations after Hep C hype. Stifel Nicolaus says, "We are downgrading Idenix shares from Hold to Sell. Idenix shares have more than doubled as a result of the recent M&A tailwind in the hepatitis C (HCV) development space that has emphasized demand for nucleotide-based assets. However, we believe the significant difference in potency that exists between IDX-184 and Pharmasset's PSI-7977 and Inhibitex's INX-189 has meaningful implications on how the remaining potential consolidators of the space strategically view the longer-term competitiveness and ROI of a 2-drug vs. 3-drug regimen. We think that fundamental difference in potency negatively impacts valuation and believe the risk/reward profile at current levels is now disproportionately skewed to the downside." IDIX closed at $14.33 a share.