Janney affirms DepoMed (Nasdaq: DEPO) at Buy with a fair value estimate of $28 following a check on recent prescription trends

Analyst Ken Trbovich noted that Nucynta ER prescription growth was 23 percent for March, which came in ahead of the firm's expectations. The analyst noted that Nucynta IR prescription were flat versus the same period last year, but said that the result was an improvement relative to the mid-to-high single digit declines the product was experiencing prior to Depomed’s acquisition and relaunch of the brand.

Trbovich commented, March prescription trends look good to us, but may lead to downward revisions of 1Q16 estimates from others. The March variance from our estimates is quite small, thus while we are confident in our estimates going into the quarter, we cannot say that regarding the consensus view. We note that the fundamental outlook for Depomed remains strong over the long-term with Nucynta ER posting 23% growth compared to March 2015. As a result, while our fundamental view of the company remains unchanged, we are only cautiously optimistic going into 1Q16.

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