Actavis, Inc. (NYSE:ACT)

IB 90+

wrong side of MA

TP 95

The company's stock is climbing after federal regulators approved its generic version of Endo Health Solutions Inc.'s Lidoderm pain patch. This, and other products it produces, will help it to outperform in the long term.

EPS Ranking 99

276. Watson Pharmaceuticals (NYSE: WPI) is down from $70 where it topped in 2011. At the present price of around $62, I think that there is a little upside here. Target: $63-$68. My 2012 EPS estimate is $5.60 which puts this at a P/E of 11.1 for a company growing at a double digit clip. Definately looks inexpensive here. Glad to see Bret agrees. I'll be playing CAPS points on this one.

http://beta.fool.com/bradford86/2012/01/14/price-market-part-42/

Generic drugs are where the cash is. Watson (I'm told) is well positioned to take advantage of some of the big blockbuster drugs that will be going to generic in the coming months. 2011 and 2012 estimates indicate that Watson is still growing at a much faster pace than their competitors. Even if earnings and guidance are lower than expected, Watson will still show growth in both Revenue and Earnings.

with the purchase of arrow group, is has acquire first to market atorvastatin and partial ownership of eden biodesign, bio generic firm

would not be surprise if teva acquires them after it's done w/ digesting ratiopharm

watch

Ford Strong Buy, S&P (4 or 3 stars), Member of S&P 500

big player, sound strategy

The generic drug industry is rapidly consolidating amidst a flurry of recent M&A activity -- including the following buyout offers:

Industry leader Teva Pharma (TEVA): buyout bids for Barr (BRL) ($7.5B) & Bentley Pharma (BNT) ($350M)
Sanofi-Aventis (SNY): a $2B bid for Czech-based Zentiva (which has been rejected)
Daiichi-Sankyo (Tokyo: 4568): a $4.6B bid for India-based Ranbaxy (500359)
Fresenius Medical (FMS): buyot of generic injectable firm APP Pharma (APPX) valued at up to $4.6B
India-based Sun Pharma (524715): offer to buy its remaining stake in Taro Pharma (TAROF)
Existing benchmark funds for my Global Generic Drug Index include the pharmaceutical ETFs which contain a mix of biotechs, brand pharma, and generic pharma companies -- including the Pharma HOLDRs (PPH), PowerShares Dynamic Pharma (PJP), iShares Dow Jones US Pharma (IHE), and the S&P Pharma SPDR (XPH). As a pure play index and ETF idea, the global generic drug industry has outpaced all of its drug ETF benchmarks over the past year thanks to widespread M&A, a large number of small/mid-caps, and upcoming key patent expirations for blockbuster brand drugs.

Key patents of multi-billion dollar brand drugs are set to expire within the next few years, including Risperdal and Fosamax in 2008, Prevacid and Topamax in 2009, Lipitor and Effexor XR in 2010, Plavix and Actos in 2011, Singulair and Seroquel in 2012. According to IMS Health statistics, generic medications accounted for 63% of all medications dispensed in the United States in 2006, representing a growth rate of over 22% for unbranded generic drugs. Finally, Momenta Pharma (MNTA) is included in my index as a leader in biogenerics. Momenta has surged nearly four-fold since the rejection late last year on word that the FDA is not requiring additional clinical trials for the generic form of Lovenox, with US sales of $750M in 2007 for Sanofi-Aventis. Momenta also recently filed a patent challenge to produce a generic form of the multiple sclerosis drug Copaxone, which is made by Teva.

PEG<1.0, S&P rates as buy, top 1% of Schwab's rating system, target price of $35.

My purpose and purpose only is to pick the opposite of whatever Jim Cramer picks to prove a point......

Breakout Upwards

I know its not a true drug maker, mainly deals in generics. But hey, with this world gettin hooked on the meds more each year what's wrong with the cheap drugs--especially with DEMS headed to whitehouse etc... Also, I hear they have like 60 apps pending with FDA for some new pipeline drugs at approx 2 billion in revenue's possible. Not a huge % gainer but steady makes you rich if your young (like me 35-hope that is young-relatively anyway)

possible takeover target

Watson is expected to launch some great generics this year and increase it's production levels to meet the global demand.

Rated 4 stars by S&P, B by Charles Schwab, 3 stars by CAPS, and near unanimous outperform by Wall Street. With that much agreement it might be a winner.