Needham & Company Maintains a 'Strong Buy' on Par Pharmaceutical (PRX); Threat Finally Emerges on Megace ES; Longer Term Overhang With No Immediate Bite
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Price: $49.98 --0%
Rating Summary:
1 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Strong Buy' on Par Pharmaceutical (NYSE: PRX) price target of $38.00.
Needham analyst says, "FDA’s web site reveals that the first ANDA filing with a PIV certification has been filed (4/27/11) and accepted for review on PRX’s Megace ES, a nanoparticle solution formulation of megestrol acetate for appetite enhancement and the anchor of the company’s evolving branded product effort with sales in the mid $60.0MM range. Taiwan-based TWi Pharmaceuticals (N/R) submitted the generic application and while the company itself is largely an unknown, its founder Chih-Ming Chen has a long established successful track record in patent challenge endeavours through entities including Andrx & another current operating company Anchen."
"While the filing of an ANDA can’t be deemed a complete surprise, the failure of one to emerge thus far, six-plus years after first approval, has likely desensitized investors to the underlying risk. Though this introduces a new, and arguably substantial new risk element into PRXs’ branded product platform, given the long-tailed nature of dispute resolution in patent challenge cases, we don’t anticipate any swift or significant reaction in PRX shares."
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 $33.77 yesterday.
Needham analyst says, "FDA’s web site reveals that the first ANDA filing with a PIV certification has been filed (4/27/11) and accepted for review on PRX’s Megace ES, a nanoparticle solution formulation of megestrol acetate for appetite enhancement and the anchor of the company’s evolving branded product effort with sales in the mid $60.0MM range. Taiwan-based TWi Pharmaceuticals (N/R) submitted the generic application and while the company itself is largely an unknown, its founder Chih-Ming Chen has a long established successful track record in patent challenge endeavours through entities including Andrx & another current operating company Anchen."
"While the filing of an ANDA can’t be deemed a complete surprise, the failure of one to emerge thus far, six-plus years after first approval, has likely desensitized investors to the underlying risk. Though this introduces a new, and arguably substantial new risk element into PRXs’ branded product platform, given the long-tailed nature of dispute resolution in patent challenge cases, we don’t anticipate any swift or significant reaction in PRX shares."
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 $33.77 yesterday.
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