Needham & Company Maintains a 'Strong Buy' on Par Pharmaceutical (PRX); Zuplenz & Oravig Life Support Terminated; Restructuring Removes Overhang
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Price: $49.98 --0%
Rating Summary:
1 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
Rating Summary:
1 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
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Needham & Company maintains a 'Strong Buy' on Par Pharmaceutical (NYSE: PRX), PT $38.
Needham analyst says, "PRX has announced a major restructuring of its Strativa branded division, a move that will effectively generate annualized cost savings of $17.0-$20.0MM on a permanent basis. The move, while born of defeat, is by no means a negative in our view in that management has shown sound fiscal discipline in pulling the plug on two new products in early stage of launch, Zuplenz and Oravig, that have simply fallen as far short of expectations as possible. Though PRX’s branded platform will remain in “show me” phase for the time being, we view the restructuring as a case of the wrong products rather than the wrong strategy. The upside of cutting its losses quickly is that management can now focus on redeploying capital into PRX’s reinvigorated generic platform or searching for more proven branded assets to bring into the Strativa platform."
For more ratings news on Par Pharmaceutical click here and for the rating history of Par Pharmaceutical click here.
Shares of Par Pharmaceutical closed at $32.70 yesterday.
Needham analyst says, "PRX has announced a major restructuring of its Strativa branded division, a move that will effectively generate annualized cost savings of $17.0-$20.0MM on a permanent basis. The move, while born of defeat, is by no means a negative in our view in that management has shown sound fiscal discipline in pulling the plug on two new products in early stage of launch, Zuplenz and Oravig, that have simply fallen as far short of expectations as possible. Though PRX’s branded platform will remain in “show me” phase for the time being, we view the restructuring as a case of the wrong products rather than the wrong strategy. The upside of cutting its losses quickly is that management can now focus on redeploying capital into PRX’s reinvigorated generic platform or searching for more proven branded assets to bring into the Strativa platform."
For more ratings news on Par Pharmaceutical click here and for the rating history of Par Pharmaceutical click here.
Shares of Par Pharmaceutical closed at $32.70 yesterday.
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