Impax Laboratories Could Be Acquisition Target
01.06.05, 10:20 AM ET
Banc of America Securities upgraded Impax Laboratories (nasdaq: IPXL - news - people ) to "buy" from "neutral," raised the target price to $21 from $14, and said the company is one of its top picks for 2005. Banc of America said that the launch of Wellbutrin SR 200mg, a depression treatment, "is a key transition event for Impax as it represents the company's move from partnered products to a situation where they will now have greater control of their performance. As both a six-month exclusive opportunity and a non-partnered product, Wellbutrin SR 200mg should result in a significant margin boost for the company." The research firm said that with the late December launch of Wellbutrin DR 200mg and "a potentially conservative" new timeline for the generic launches of Concerta, a treatment for attention deficit hyperactivity disorder, and painkiller Oxycontin, "we believe the shares are now poised for longer-term price appreciation." Banc of America also said Impax "has the characteristics of an attractive acquisition candidate in generics, as its size, technology base, growth profile, and pipeline make it accretive to growth, accretive to strategic pipeline development, and easily digestible for a range of companies--both mid-sized and larger." Elsewhere in its coverage of specialty pharmaceuticals, Banc of America's top two picks are Alcon (nyse: ACL - news - people ) and Eon Labs (nasdaq: ELAB - news - people ), both rated at "buy" with respective price targets of $90 and $32. The firm's two least favorites are Bradley Pharmaceuticals (nyse: BDY - news - people ) and Bausch & Lomb (nyse: BOL - news - people ), both rated at "sell" with respective price targets of $10 and $43.
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