Needham & Company Maintains a 'Hold' on Par Pharmaceutical (PRX); Is Endo (ENDP) the 'Mystery Bidder'
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Price: $49.98 --0%
Rating Summary:
1 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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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Needham & Company maintains a 'Hold' on Par Pharmaceutical (NYSE: PRX).
Analyst, Elliot Wilbur, said, "Following up on some of our earlier commentary surrounding the bidding for PRX, we are admittedly somewhat surprised that things have been radio silent since news of TPG’s $50 per share cash bid for PRX first broke on July 16. We continue to believe that significant synergies could be derived by a strategic buyer with the ability to essentially eliminate the existing PRX G&A and manufacturing infrastructure, effectively acquiring just the PRX product revenue streams. Currently there isn’t a long list of players with this capability; we previously suggested that only Watson (NYSE: WPI)(Hold), Mylan (NYSE: MYL)(Strong Buy), Teva (Nasdaq: TEVA)(Hold) and Novartis’ (NYSE: NVS)(not rated) Sandoz division could pull off such a maneuver. Of these players, only MYL in our view was in a position to move on such a transaction, and based on our analysis it could derive substantial revenue and cost synergies from deal."
Wilbur said the 'Go shop' period has been too quiet, but has recently fallen into the camp that a mystery bidder from the first round could be Endo Pharma (Nasdaq: ENDP). He also mentioned that the 'mystery' bid was 12% below the winning bid, so it's possible that who ever it was could come back around for another offer.
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 $49.80 yesterday.
Analyst, Elliot Wilbur, said, "Following up on some of our earlier commentary surrounding the bidding for PRX, we are admittedly somewhat surprised that things have been radio silent since news of TPG’s $50 per share cash bid for PRX first broke on July 16. We continue to believe that significant synergies could be derived by a strategic buyer with the ability to essentially eliminate the existing PRX G&A and manufacturing infrastructure, effectively acquiring just the PRX product revenue streams. Currently there isn’t a long list of players with this capability; we previously suggested that only Watson (NYSE: WPI)(Hold), Mylan (NYSE: MYL)(Strong Buy), Teva (Nasdaq: TEVA)(Hold) and Novartis’ (NYSE: NVS)(not rated) Sandoz division could pull off such a maneuver. Of these players, only MYL in our view was in a position to move on such a transaction, and based on our analysis it could derive substantial revenue and cost synergies from deal."
Wilbur said the 'Go shop' period has been too quiet, but has recently fallen into the camp that a mystery bidder from the first round could be Endo Pharma (Nasdaq: ENDP). He also mentioned that the 'mystery' bid was 12% below the winning bid, so it's possible that who ever it was could come back around for another offer.
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 $49.80 yesterday.
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