Shares of the major generic drug makers rose Tuesday in line with the overall market, while a Banc of America Securities analyst recommended investors buy three of the larger companies in the sector.
In a note to investors late Monday, analyst Frank H. Pinkerton said the sector will benefit from "an aging population, product innovation and acquisitions (which) should contribute to earnings growth ahead of the market."
He started coverage of Teva Pharmaceutical Industries Ltd., Mylan Inc. and Barr Pharmaceuticals Inc. with "Buy" ratings on their shares.
He called Israeli drug maker Teva a "Best in Class Generic," pegging a $55 price target on its shares.
For Canonsburg, Pa.-based Mylan Inc., the analyst forecast three significant generic drug launches that will accelerate cash flow in 2008. He put an $18 price target on the stock.
Among reasons for starting shares of Pomona, N.Y.-based Barr Pharmaceuticals Inc. at "Buy," Pinkerton said the company has 70 abbreviated new drug applications on file with the Food and Drug Administration.
However, he started Corona, Calif.-based Watson Pharmaceuticals Inc. at "Neutral," citing a lack of catalysts until 2009. That's when Watson could potentially launch three small products.
Here's how the key generic drug makers fared Tuesday:
Teva Pharmaceutical Industries Ltd. rose 48 cents to $44.22.
Mylan Inc. gained 31 cents, or 2.3 percent, to $13.77.
Barr Pharmaceuticals Inc. increased 48 cents to $52.66.
Watson Pharmaceuticals Inc. fell 19 cents to $27.62.
Caraco Pharma Labs slipped 1 cent to $14.97.
Pharmaceutical Co. advanced 14 cents to $20.97.
Terms & Conditions
RSS Headlines
Fool UK