Auriga Starts Medicis (MRX) at Buy; Favorable Risk/Reward Profile

Auriga initiates coverage on Medicis (NYSE: MRX) with a Buy. PT $47.00.

Analyst, Louise Chen, said, "...We expect upwards earnings revisions to drive the stock higher. The company's risk/reward profile is favorable, and its base business is at an upwards inflection point, with many potentially positive catalysts that are not fully reflected in its stock price yet. Expectations for Solodyn sales growth are modest and the potential for an acquisition of MRX provides downside protection to its stock price. MRX has a solid earnings foundation with Solodyn. There is no generic competition for the new strengths of Solodyn until 2018, and we would expect MRX to launch the Advanced forms of Solodyn by 2017...MRX is also launching Zyclara 3.75% pump and will launch the Zyclara 2.5% pump when the Orange Book patents get listed (likely before 3/2013). Finally, MRX has started to give more visibility on its pipeline. This should be a positive catalyst as these opportunities get incorporated into consensus expectations."

For an analyst ratings summary and ratings history on Medicis click here. For more ratings news on Medicis click here.

Shares of Medicis closed at $38.23 yesterday.

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