Collagen Corp. stock (NASDAQ:CGEN) fell $3.50 on Tuesday,closing at $20.38, after Hambrecht & Quist analyst Kurt Krugerlowered his earnings estimates on the Palo Alto, Calif., makerof biomedical implants.
Kruger lowered his 1991 earnings estimates for the year endedJune 30 to 50 cents a share, down from 65 cents. He lowered1992 estimates to 75 cents, down from $1.
Kruger told BioWorld that the company's sales had been hurt bynews reports that raised questions about the safety ofCollagen's injectable collagen to treat wrinkles and acne.
"I don't think the FDA (Food and Drug Administration) willprevent Collagen from selling the product," said Kruger, whosaid he believes the product is safe.
Collagen in June set up an 800 telephone number to answerquestions related to the safety of its products. Collagen, alongwith three other companies, was the subject of congressionalhearings on unapproved uses of drugs on June 11. The companyalso faces litigation over allegations that a skin testadministered by Collagen caused a woman to contract anautoimmune disease. Collagen said it has successfullydefended itself in two similar cases. -- KB
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