S&P cuts Nabi view to negative

Standard & Poor's said it revised its outlook on Nabi Biopharmaceuticals to negative from stable.

The company's ratings, including the B corporate credit rating, were affirmed.

The outlook change is in response to the company's announcement that it is halting the development of StaphVAX and has withdrawn its European Union marketing approval application, S&P said.

StaphVAX was Nabi's lead development candidate and held high sales potential. But data from a confirmatory phase III clinical trial indicated that StaphVAX failed to meet its primary endpoint. Nabi also has halted development on Altastaph, another product for preventing and treating staph infections, S&P said.

The ratings reflect the company's narrow business focus as a niche developer of biopharmaceutical products and vaccines, as well as its limited cash flow generating ability, S&P said. The prospective loss of StaphVAX leaves the company with no significant high-potential late-stage prospects.

These negative factors are only partially offset by the modest sales growth of Nabi's products and its current adequate liquidity, S&P said.

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