UPDATE: Credit Suisse StartsMedicis (MRX) at Underperform, Solodyn Settlement With Teva Reduces Legal Risk

Credit Suisse initiated coverage on shares of Medicis (NYSE: MRX) with an Underperform rating and a $27 price target, which is based off of an average of discounted cash flow, $30 and relative P/E of $24.

The firm reports that the recent Solodyn settlement with Teva reduces legal risk for the brand, but not commercial risk due to the franchise associated with the generic entry of 3 [of 8] doses in November 2011. As a result, Credit Suisse believes that expectations are too high in regards to the market share that the remaining 5 branded doses of Solodyn will retain in 2012, it accounts for 70% of their EPS.

The firm notes that, "MRX Is Known for Its Management Magic, but Solodyn Commercial Challenges Are High, Even for Such a Well Regarded Team: Achievement of our [lower] estimates would still beat industry benchmarks."

For more ratings news on Medicis click here and for the rating history of Medicis click here.

Shares of Medicis closed at $30.00 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Marex Group PLC (MRX) PT Raised to $90 at Keefe, Bruyette & Woods
• Jefferies on Five Below (FIVE): 'Our latest channel checks reinforce our view that FIVE's momentum extends well beyond viral Squish trends'
• Freedom Broker Upgrades Lifeway Foods (LWAY) to Buy