UPDATE: Rodman & Renshaw Downgrades Zalicus to Market Perform on Synavive Failure

Rodman & Renshaw reduced its rating on Zalicus

from Market Outperform to Market Perform and suspended its previous $5 price target. Rodman & Renshaw noted, "Yesterday, Zalicus (ZLCS) announced that Synavive failed to demonstrate clinically meaningful benefit compared to its active glucocorticoid component, prednisolone 2.7mg. As a result, the company will discontinue the program. According to our investment policy, we are changing our Under Review to Market Perform without a Target Price for Zalicus shares. We are also removing all estimates from our model for Synavive, which previously had accounted for $2.01 towards our SOTP (sum of the parts) valuation analysis." Zalicus closed at $0.79 on Monday.