Big Fall for Cowen Analyst

OKLAHOMA CITY -- The price Cowen & Co. (COWN Quote) paid for one of its top analysts now looks awfully steep.

Cowen reportedly offered top dollar to Dhulsini de Zoysa -- a rising star covering the medical device industry -- when courting her a few years ago. The firm placed de Zoysa in charge of covering some of the biggest names in healthcare, including Medtronic (MDT Quote) and Boston Scientific (BSX Quote), in hopes of publishing groundbreaking research that would stand out from the rest.

Late last month, however, the firm abruptly backed away from that unique research after an internal review raised questions about the integrity of the work.

"All previously published Cowen research reports on these companies are withdrawn, will no longer be made available to our clients and may not be relied upon," Cowen stated in an Aug. 29 note to clients. Meanwhile, "the analyst who prepared these reports has been terminated."

Cowen declined to elaborate on the situation, and de Zoysa didn't return a call seeking comment. But Sheryl Skolnick, a healthcare expert who once worked with de Zoysa at Fulcrum Global Partners, was stunned by the implications of Cowen's move.

"At Fulcrum, I had the opportunity to review her work," says Skolnick, who has since moved on to become senior vice president of CRT Capital Group. "She had very sound research methodologies and practices. Her i's were dotted, her t's were crossed, and her pieces were thoughtful.

"I found her -- at that point in time -- to be a very talented analyst," Skolnick says. "But what happened between 2004 and 2007, I have no idea."