Barr None

It's not as if Barr Pharmaceuticals (NYSE:BRL) was much of a secret back in the late summer of 2005, but it certainly has been attracting more attention. Since touching $45 around September, the stock has spent most of its time going up -- to the tune of a 50% jump in under six months.

And why not? Not only is the growth today pretty good, but there are some credible reasons to believe that this momentum will continue for a while longer yet.

For the fiscal second quarter, Barr reported that revenue rose 26%. Though generics sales were up just 9% (due in part to weaker contraceptive performance), proprietary drug sales rose 25%, and alliance/development revenue jumped sharply. With Barr getting royalties from Teva Pharmaceuticals (NASDAQ:TEVA) for generic Allegra, this is one of those areas of potential ongoing strength.

Not only do higher alliance/development revenues boost overall margins, but the company saw improved gross margins, even excluding the rise in that revenue category. While stronger profitability filtered through the income statement, the company saw operating profits up over 61% and adjusted earnings per share up nearly 52%.

So what else does Barr have going for itself? There are 30 applications pending at the FDA, and the underlying drugs have branded sales of about $10 billion a year. But what could be most impressive are a few potential drug launches. None of these are guaranteed, but launches of generic versions of products like Allegra-D, Adderall XR (currently marketed by Shire (NASDAQ:SHPGY)), and Ortho Tri-Cyclen Lo would all be meaningful. What's more, the company recently reached a patent settlement with Cephalon (NASDAQ:CEPH) that will ultimately give it rights to Actiq and Provigil without further costly litigation.

Growth ultimately attracts attention, and that's certainly the case here. Bargain hunters are probably going to come up short when it comes to assessing this stock, but a fairly rich package of opportunities should keep growth strong for the immediate future.

For more non-generic thoughts on generics:

• Reddy, Set, Go!
• Teva Is No Generic Generics Firm
• Belly Up to Barr

Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).