UPDATE 1-RESEARCH ALERT-Clarus cuts GLG Life Tech to sell

Nov 2 (Reuters) - Clarus Securities cut its rating on Canada's GLG Life Tech Corp (GLG.TO) to "sell" from "hold," citing concerns with the company's delayed contracts, and its financial outlook.

Shares of the company fell as much as 10 percent on Monday, before recouping some losses to trade down 19 Canadian cents at C$2.66 in late-afternoon trade on the Toronto Stock Exchange.

GLG, which reported better-than-expected quarterly profit, however, lowered its revenue outlook for the full year, citing a strong Canadian dollar.

Analyst Steven Gold said the cut in outlook reflects more than the currency alone, adding that the decrease may be from delayed new contract generation or added delays with respect to existing agreements.

He also said that a supply agreement with Cargill that was to run from October 2008 to September 2009 has been delayed to November.

This is likely due to lower demand than expected or because GLG was unable to meet its obligations due to operational issues or product quality concerns," analyst Gold said. (Reporting by Isheeta Sanghi in Bangalore; Editing by Anil D'Silva)