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Ahead of the Bell: Endo Pharmaceuticals downgraded to 'Hold'

By Associated Press
May 2, 2008 | Comments (0)

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A Roth Capital Partners analyst downgraded shares of Endo Pharmaceuticals Holdings Inc. Friday, saying weak sales of key drugs will prevent the stock from rising much higher.

Scott Henry lowered his rating to "Hold" and his price target to $28 per share as he assumed coverage of Endo. He said Endo's Voltaren osteoarthritis gel and the Lidoderm pain patch are not selling as well as he expected, and potential patent challenges to Lidoderm are a major risk to the stock.

Previously, Roth analyst Greg Gust rated the stock "Buy," with a price target of $34 per share.

Henry said patients seem to dislike the large amounts of Voltaren they are supposed to use, while competition is hurting Lidoderm sales. He added that Endo is likely to buy a smaller company soon, and investors should wait to see what the company is planning.

Shares of the Chadds Ford, Pa., company finished at $24 Thursday.

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