UBS Maintains a 'Buy' on Watson Pharmaceuticals (WPI); Such a Prochieve Bummer
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Price: $85.73 --0%
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Buy' on Watson Pharmaceuticals (NYSE: WPI) price target of $71.00.
UBS analyst said, "The panel largely agreed that the pivotal trial did not provide sufficient data with strong statistical evidence across regional subgroups (the data from the FDA analysis of the US subgroup had no treatment effect) to conclude that Prochieve provides a clinically meaningful benefit. Members generally thought that a 2nd confirmatory study would be needed to approve the drug. However, they generally thought that progesterone gel may still play a role in preventing pre-term pregnancy, and some even suggested using Crinone off-label."
"We are taking our PT down by $7 to reflect the DCF value of Prochieve in our model. With the Prochieve panel behind us, investors are now focused on Tuesday's analyst day where we anticipate mgt. will provide us with scenario II guidance that probably brackets consensus of $5.80 in 2012. More importantly, we believe mgt needs to increase visibility on 2013 earnings to get this stock moving again."
For an analyst ratings summary and ratings history on Watson Pharmaceuticals click here. For more ratings news on Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $58.14 yesterday.
UBS analyst said, "The panel largely agreed that the pivotal trial did not provide sufficient data with strong statistical evidence across regional subgroups (the data from the FDA analysis of the US subgroup had no treatment effect) to conclude that Prochieve provides a clinically meaningful benefit. Members generally thought that a 2nd confirmatory study would be needed to approve the drug. However, they generally thought that progesterone gel may still play a role in preventing pre-term pregnancy, and some even suggested using Crinone off-label."
"We are taking our PT down by $7 to reflect the DCF value of Prochieve in our model. With the Prochieve panel behind us, investors are now focused on Tuesday's analyst day where we anticipate mgt. will provide us with scenario II guidance that probably brackets consensus of $5.80 in 2012. More importantly, we believe mgt needs to increase visibility on 2013 earnings to get this stock moving again."
For an analyst ratings summary and ratings history on Watson Pharmaceuticals click here. For more ratings news on Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $58.14 yesterday.
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