Cumberland falls after Wells Fargo analyst cuts rating

November 9, 2012

Drug maker Cumberland Pharmaceuticals (CPIX) is falling after Wells Fargo analyst Michael Tong downgraded the stock to Market Perform from Outperform in a note to investors earlier this morning. Another pharmaceutical company, Innopharma, has received FDA approval to market a generic version of Cumberland's Acetadopte, a treatment for chronic pulmonary disease and acute bronchopulmonary disease, the analyst wrote. Tong doesn't know when Innopharma will begin marketing its drug, and he believes that Cumberland may seek a preliminary injunction that could postpone the launch. Still, the analyst believes that Cumebrland's stock is unlikely to appreciate as long as uncertainty about the matter persists. In mid-morning trading, Cumberland fell 27c, or 4.88%, to $5.22.