Needham & Company Maintains a 'Strong Buy' on Par Pharmaceutical (PRX); Positive Outcome for Par as a Result of Teva-Cephalon Merger

Needham & Company maintains a 'Strong Buy' on Par Pharmaceutical (NYSE: PRX) price target of $38.00

Needham analyst says, "PRX will pick up a nice little pair of niche generics, likely for little cash outlay, and the opportunity to participate in the generic Provigil market ($1.1B) at formation in April 2012. This will be as a result of being the unexpected beneficiary of forced divestiture of these assets by Teva (Nasdaq: TEVA)(Strong Buy) as a condition of final FTC approval of that company’s pending acquisition of Cephalon (Nasdaq: CEPH)(not rated). The two niche generic products, Teva’s currently marketed version of generic Actiq ($30.0MM estimated sales) or transmucosal fentanyl and its pending ANDA for a generic version of Amrix ($125.0MM muscle relaxant) are nice little visibility enhancers with the immediate bottom line contribution from generic Actiq generating as much as $0.20-$0.25 in annualized EPS."

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 $27.38 yesterday.

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