This was after the recall of Hovid's Ternolol 50mg Tablets Batch BG04645 last Friday, due to incorrect labelling. As there will be no major recall on Hovid’s other products, it is allowed to continue marketing its existing stocks. “Following our lower earnings estimates from this setback, we downgrade to ‘Reduce’ from ‘Hold’. Our SOP-based target price is also lowered to 32 sen, based on a lower P/E multiple of 13.3x on its operations,” CIMB Research said. Downside or upside risks to our view [would include] prolonged or shorter-than-expected suspension period of its manufacturing licences and indefinite suspension of licences,” it added.

Source: The Edge Markets January 10, 2017 04:11 UTC