Wedbush Maintains a 'Neutral' on Endo Pharmaceuticals (ENDP); Adjusts Estimates & PT Ahead of Anticipated Aveed Approval
ENDP Hot Sheet
Rating Summary:9 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Wedbush maintains a 'Neutral' rating on Endo Pharmaceuticals (Nasdaq: ENDP), raises price target from $22.50 to $24.
Wedbush analyst says, "We look for a full approval for Aveed (long-acting injectable testosterone) on or before Wednesday’s PDUFA date. Our understanding the last time through was that the drug was signed off on by the agency with a clean label, except for the REMS group which triggered the 90-day delay. Therefore, we expect an outright approval on December 2nd with no black box warnings or restricted distribution (this is based on the added safety data that was included which contained 14,000+ injections with no additional incidences of cough). At this point, we would handicap a favorable outcome for Aveed at 75%...We still have concerns on product positioning and pricing once approved. On the competitive front, we still question how much market share Aveed will ultimately be capture from the currently marketed topical products and whether Aveed will be able to garner a premium price based on its longer duration. We therefore envision the Aveed revenue ramp as being slow and steady given the reimbursement process and as patients make a gradual switch from topicals to injectable...Also, of note, we adjusted our 2009 EPS estimate from $2.67 to $2.70. This is in-line with updated company guidance after Q3 earnings where management guided FY earnings higher (partially due to the push out of new products launches) to a range of $2.67-$2.73 from $2.67-$2.70."
To see all the upgrades/downgrades on shares of ENDP, visit our Analyst Ratings page.
Endo Pharmaceuticals Holdings Inc., is a specialty pharmaceutical company in pain management.
Wedbush analyst says, "We look for a full approval for Aveed (long-acting injectable testosterone) on or before Wednesday’s PDUFA date. Our understanding the last time through was that the drug was signed off on by the agency with a clean label, except for the REMS group which triggered the 90-day delay. Therefore, we expect an outright approval on December 2nd with no black box warnings or restricted distribution (this is based on the added safety data that was included which contained 14,000+ injections with no additional incidences of cough). At this point, we would handicap a favorable outcome for Aveed at 75%...We still have concerns on product positioning and pricing once approved. On the competitive front, we still question how much market share Aveed will ultimately be capture from the currently marketed topical products and whether Aveed will be able to garner a premium price based on its longer duration. We therefore envision the Aveed revenue ramp as being slow and steady given the reimbursement process and as patients make a gradual switch from topicals to injectable...Also, of note, we adjusted our 2009 EPS estimate from $2.67 to $2.70. This is in-line with updated company guidance after Q3 earnings where management guided FY earnings higher (partially due to the push out of new products launches) to a range of $2.67-$2.73 from $2.67-$2.70."
To see all the upgrades/downgrades on shares of ENDP, visit our Analyst Ratings page.
Endo Pharmaceuticals Holdings Inc., is a specialty pharmaceutical company in pain management.
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