Ahead Of The Bell: Caris Downgrades Mylan

NEW YORK (AP) — A Caris & Co. analyst downgraded Mylan Inc. Wednesday after the drug developer abruptly announced the departure of chief financial officer Jolene Varney.

Caris analyst David Moskowitz downgraded shares to "Average" from "Buy" and reduced his price target to $14 from $17. He cited concerns over the inner workings of management at Mylan.

Late Tuesday, the Pittsburgh-based company, which focuses on generic and branded drugs, said it parted ways with Varney after a little more than three months. She joined the company in late May. Mylan said it hired recruiting firm Korn/Ferry International, and will search for another CFO.

"This unfortunate news comes soon after the company's prior CFO, Ed Borkowski, left the company in March," Moskowitz wrote in a note to investors. "Limited visibility on why these departures took place gives us pause regarding the senior leadership team at Mylan, and until another CFO is appointed and assessed, we believe investors will continue to wonder what is wrong inside the company."

He said the stock is up about 50 percent year-to-date and "profit taking" is warranted.