UPDATE: Bloom Burton Downgrades Theratechnologies to Sell, Lowers PT

In a research comment published earlier today, Bloom Burton & Co. Inc. downgraded its rating for Theratechnologies Inc. THER from Hold to Sell, and lowered its price target from $2.50 to $0.75. Bloom Burton went on to say “While the stock has already reacted to this negative news, we now see no reason to hold THER stock. THER has a cash balance of $28.5 million (Feb 28, 2012) or $0.47/share, which is steadily declining. We forecast peak sales of Egrifta of $80-100 million with a 12-13% royalty. If we add in expected manufacturing sales, we estimate total Egrifta royalty + revenues to THER of about $25 million in F2013 ($0.40/share). In addition, as a result of this latest news, we could see further cost cutting measures at THER. We believe there are no meaningful milestones to drive value in the stock in the near term.” Theratechnologies Inc. closed on Friday at $0.73.