Leerink Swann Remains Positive on Shares of Par Pharmaceutical (PRX) Following Meeting With Management
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Rating Summary:
1 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Leerink Swann is reaffirming its Outperform rating and $34-$35 valuation range on shares of Par Pharmaceutical (NYSE: PRX) following recent talks with management at its POLARxPRESS bus tour.
During the talks, management cited that the recent shareholder activist letter was "benign" as it did not specify any measures for the company to undertake nor was a board seat requested by the group.
Management noted that Par Pharmaceuticals has not received any acquisition offers and does not believe the letter inquirers any hostile bids are imminent. The management team plans to address concerns of sustainability, its business model, and three year growth outlook during the company's analyst day on January 6, 2012.
An analyst at Leerink Swann comments, "PRX views the Apotex Lovaza settlement as the weakness in the patents of GSK (MP)/ProNova a patent challenge decision is expected in 1Q:12. We expect the 2013 patent will be upheld while the 2017 patent will be found non-infringed setting up a 2Q:13 launch."
The firm also highlights that for Strativa to become profitable, Nascobal sales growth needs to ramp up. The company admitted that it possibly over estimated refill rates of the B-12 supplement and that sales guidance may be to high.
For FY11, FY12, and FY13, Leerink Swann estimates earnings of $3.28, $3.46, and $3.79. Sales for the three consecutive years are forecasted to be $894 million, $977 million, and $1 billion.
For an analyst ratings summary and ratings history on Par Pharmaceutical click here. For more ratings news on Par Pharmaceutical click here.
Shares of Par Pharmaceutical closed at $30.77 yesterday.
During the talks, management cited that the recent shareholder activist letter was "benign" as it did not specify any measures for the company to undertake nor was a board seat requested by the group.
Management noted that Par Pharmaceuticals has not received any acquisition offers and does not believe the letter inquirers any hostile bids are imminent. The management team plans to address concerns of sustainability, its business model, and three year growth outlook during the company's analyst day on January 6, 2012.
An analyst at Leerink Swann comments, "PRX views the Apotex Lovaza settlement as the weakness in the patents of GSK (MP)/ProNova a patent challenge decision is expected in 1Q:12. We expect the 2013 patent will be upheld while the 2017 patent will be found non-infringed setting up a 2Q:13 launch."
The firm also highlights that for Strativa to become profitable, Nascobal sales growth needs to ramp up. The company admitted that it possibly over estimated refill rates of the B-12 supplement and that sales guidance may be to high.
For FY11, FY12, and FY13, Leerink Swann estimates earnings of $3.28, $3.46, and $3.79. Sales for the three consecutive years are forecasted to be $894 million, $977 million, and $1 billion.
For an analyst ratings summary and ratings history on Par Pharmaceutical click here. For more ratings news on Par Pharmaceutical click here.
Shares of Par Pharmaceutical closed at $30.77 yesterday.
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