Cytori Therapeutics shares fall on downgrade

AP News
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Posted: Dec 21, 2009 2:32 PM

Shares of Cytori Therapeutics Inc., which makes products used in adult stem cell harvesting and research, fell Monday as a Rodman & Renshaw analyst downgraded the stock after its value topped his 12-month price target.

Shares of the San Diego company fell 42 cents, or 6.8 percent, to $5.77 in afternoon trading. The stock has traded between $1.42 and $6.65 over the last 52 weeks.

Rodman & Renshaw analyst Reni Benjamin downgraded shares to "Market Perform" from "Outperform" after shares breached his $5 price target.

"Cytori encompasses a viable business model with substantial growth potential," he said, citing the company's business plan and development of its Celution system.

The company has asked for Food and Drug Administration approval of the system as soft tissue filler. Benjamin also cited recent positive data from a study using the system as a way to repair soft tissue defects in patients following a mastectomy.

In May, the company signed a deal with General Electric Co.'s health care division, which will market Cytori's stem cell extraction products in the U.S. Those include the company's StemSource products which are used to extract, freeze and apply adult stem cells taken from fat tissue.