Shares of U.S. Bioscience Inc. fell $1.25 to $33 on Thursdayafter Kidder, Peabody analyst Robert Kupor changed his ratingto a "hold" from a "buy."
Kupor recommended buying the stock (AMEX:UBS) two monthsago following the announcement that the company's Ethyoldrug to protect healthy cells from chemotherapy was to bereviewed today by a Food and Drug Administration advisorypanel. The shares rocketed in the weeks following theannouncement.
Although the stock has fallen back, it is still up about $10 sincethat time, and Kupor said he was reverting to a cautionaryhold. The analyst said he continues to believe Ethyol willreceive a narrow product label and not be the blockbuster drugmany analysts predict it will be. He estimates 1995 U.S. sales of$105 million, three times lower than estimates of mostanalysts.
Also on Thursday, Marion Merrell Dow Inc. said it planned tosell through an underwritten offering 6.6 million shares of U.S.Bioscience, representing 17 percent of shares outstanding.
Marion Laboratories Inc. bought the shares in 1989 with aneye to acquiring the West Conshohocken, Pa., company as agateway into the oncology market. But as a result of Marion'smerger with Merrell Dow Pharmaceuticals Inc., the acquisitionno longer fits MMD's long-range strategic plan, MMD said. -- KB
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