Needham & Company Maintains a 'Buy' on Hi Tech Pharmacal (HITK); Keeps The Approval Hitting Streak Alive With Another Infield Single

April 8, 2011 7:41 AM EDT
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Price: $43.49 --0%

Rating Summary:
    1 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company maintains a 'Buy' on Hi Tech Pharmacal (NASDAQ: HITK), PT $25.

Needham analyst says, "HITK has received tentative approval for its generic version of levofloxacin oral solution, equivalent to Johnson & Johnson’s (NYSE: JNJ)(not/rated) Levaquin, a broad-spectrum anti-infective. While the Levaquin solution market is tiny by JNJ standards at just $6.0MM, HITK currently has the only tentative approval with launch expected upon expiration of pediatric exclusivity in June. We assume there will be multiple competitors though in a “best case” scenario the product could generate $1.5MM in sales with potential EPS contribution up to $0.05 per annum. Levofloxacin is the latest in a string of small scale approvals that while yielding no near-term game changers, adds to current momentum in “base” generics to replace revenue lost due to removal of certain unapproved drugs over the past six quarters. Bottom line – core generics continue to receive a booster shot from recent approval streak..."

For more ratings news on Hi Tech Pharmacal click here and for the rating history of Hi Tech Pharmacal click here.

Shares of Hi Tech Pharmacal closed at $21.58 yesterday.

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