Cardiome Pharma downgraded to sector perform at RBC Capital Markets

NEW YORK, Jul 16, 2008 (Thomson Financial via COMTEX) -- CRME | Quote | Chart | News | PowerRating -- Cardiome Pharma Corp. Wednesday was downgraded to sector perform from outperform at RBC Capital Markets, which said recent gains in the share price resulted in increased downside risk.

The stock closed Tuesday at $11.03, up 18% since the start of the year. "We believe there is a more balanced risk profile given the recent share price appreciation with the positive final Phase IIb vernakalant (oral) data," the firm wrote, adding that it would advise caution on the shares in the coming weeks.

"We believe investors should hold shares but we would not be buyers at current levels," it said, keeping its $13.50 price target.

RBC estimated a 60% probability that there would be a partnership for the company soon, as the Phase IIb results put the company in a good negotiating position. The firm expects a large pharmaceutical company will "be willing to pay large upfront and development milestones to access the drug.

"However," it added, "we believe a partner is more likely to want to share the development risk rather than buy the company outright." Ryan Vlastelica rv/pc

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