Canaccord Genuity on Specialty Pharma: 5 Themes for 2012; 4 Best Stock Ideas
Tweet
Share
E-mailGet Alerts WPI Hot Sheet
Price: $85.73 --0%
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Canaccord Genuity on Specialty Pharma: 5 Themes for 2012; 4 Best Stock Ideas
Analyst Randall Stanicky called out five themes that will impact the specialty pharmaceutical sector:
1) FDA changes this year (GDUFA, biologic pathway); 2) diversification as business models become more blended; 3) exclusivity strategies by big pharma post Lipitor; 4) generic growth 5-10 years out; and 5) strategies to drive launch penetration
Top BUY rated stock ideas include:
Watson Pharmaceuticals (NYSE: WPI): is now our top idea with a catalyst-heavy path and less crowded stock creating an attractive set-up here. We lower our EPS estimates mainly to reflect conservatism on Gx Lidoderm but still above Street through ‘15 with 29% upside potential to our new $80 target.
Teva Pharmaceutical (Nasdaq: TEVA): still holds potential upside but many of the catalysts underpinning our thesis have played out and the stock is +27% since late Sept. low (vs S&P500 +13%). We now think a Copaxone court win is needed to hit our $52 target, which we expect. Look for support from EPS upside and a still unjustified P/E spread to big pharma.
Impax Laboratories (Nasdaq: IPXL): is our top small-cap name with upside expected from H1/12 catalysts likely to reverse negative sentiment and growing focus on a more robust EPS story in 2013.
MAP Pharmaceuticals (Nasdaq: MAPP): is our favorite catalyst-driven stock for those with risk appetite for material upside potential. We’d be BUYERS ahead of the March 26 PDUFA date for Levadex.
Analyst Randall Stanicky called out five themes that will impact the specialty pharmaceutical sector:
1) FDA changes this year (GDUFA, biologic pathway); 2) diversification as business models become more blended; 3) exclusivity strategies by big pharma post Lipitor; 4) generic growth 5-10 years out; and 5) strategies to drive launch penetration
Top BUY rated stock ideas include:
Watson Pharmaceuticals (NYSE: WPI): is now our top idea with a catalyst-heavy path and less crowded stock creating an attractive set-up here. We lower our EPS estimates mainly to reflect conservatism on Gx Lidoderm but still above Street through ‘15 with 29% upside potential to our new $80 target.
Teva Pharmaceutical (Nasdaq: TEVA): still holds potential upside but many of the catalysts underpinning our thesis have played out and the stock is +27% since late Sept. low (vs S&P500 +13%). We now think a Copaxone court win is needed to hit our $52 target, which we expect. Look for support from EPS upside and a still unjustified P/E spread to big pharma.
Impax Laboratories (Nasdaq: IPXL): is our top small-cap name with upside expected from H1/12 catalysts likely to reverse negative sentiment and growing focus on a more robust EPS story in 2013.
MAP Pharmaceuticals (Nasdaq: MAPP): is our favorite catalyst-driven stock for those with risk appetite for material upside potential. We’d be BUYERS ahead of the March 26 PDUFA date for Levadex.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Advance Auto Parts (AAP) PT Lowered to $48 at DA Davidson Following 25% Selloff Post Q2 Results
- Walmart (WMT) PT Lowered to $125 at JPMorgan, Overweight Rating Maintained as 'Short Case Feels Greedy'
- DA Davidson Reiterates Buy Rating on Box, Inc. (BOX) on Secular Tailwinds for Demand
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Standard & Poor'sSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
