China Nepstar (NYSE:NPD), which operates operates retail drugstores in China, was downgraded by Goldman Sachs (NYSE:GS) from "Neutral" to "Sell."
Of particular note cited by Goldman was the removal of hospital drug mark-ups of 15%, which will put the retail pharmacy industry as a disadvantage in china.
Also mentioned is the rising operational costs, also expected to put additional pressure on Nepstar's margins.
Nepstar closed Friday at $3.55, losing $0.33, or 8.51 percent.
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