Watson Pharmaceuticals, Inc. (WPI)
The Company is engaged in the development, manufacture, marketing, sale and distribution of brand and off-patent pharmaceutical products.
Recs
JDKeene
(92.68)
Submitted: 8/12/2009 1:01:32 PM :
Start Price:
$34.88
WPI Score:
-3.02
Ford Strong Buy, S&P (4 or 3 stars), Member of S&P 500
Recs
F111Driver
(83.05)
Submitted: 8/5/2009 7:52:31 AM :
Start Price:
$34.84
WPI Score:
-6.85
WPI has a portfolio of drugs of which more than 80% are generic...with health care reform (i.e. cost cutting) looming, they are well positioned to reap the benefits. The company just launched a generic alternative to Ferrlecit (an iron therapy replacement for dialysis patients) which will spoil profits for companies selling high priced brand names (see my AMAG pick). With Paul Bisaro (former CEO of Barr Pharmaceuticals) at the helm, this company is a good bet to outperform its peers.
Recs
Doctomme
(34.68)
Submitted: 7/14/2009 2:28:49 AM :
Start Price:
$32.97
WPI Score:
-6.20
Manufactor of Norco a popular alternative to Vicodin used by many hospitals, following FDA's fear of acetaminophen. (Note, most Tylenol type Overdoses are intentional)
Recs
LexTNZorro
(74.87)
Submitted: 5/4/2009 3:21:31 AM :
Start Price:
$30.25
WPI Score:
-2.85
http://seekingalpha.com/article/133869-fda-clinical-trial-updates-watson-pharma-united-therapeutics-auxilium-dendreon?source=feed
Recs
Keithkos1
(74.04)
Submitted: 4/25/2009 10:20:35 PM :
Start Price:
$32.00
WPI Score:
-13.72
big player, sound strategy
Recs
balletto
(74.92)
Submitted: 1/9/2009 12:21:31 PM :
Start Price:
$24.69
WPI Score:
+25.27
morningstar screen
Recs
stockblog
(90.73)
Submitted: 9/28/2008 8:10:05 PM :
Start Price:
$28.50
WPI Score:
+35.36
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.
Recs
Cyrus77
(96.10)
Submitted: 9/10/2008 9:37:50 PM :
Start Price:
$29.15
WPI Score:
+34.21
PEG<1.0, S&P rates as buy, top 1% of Schwab's rating system, target price of $35.
Recs
CRAMERSUKS
(66.64)
Submitted: 9/5/2008 12:27:50 PM :
Start Price:
$29.76
WPI Score:
+32.88
My purpose and purpose only is to pick the opposite of whatever Jim Cramer picks to prove a point......
Recs
SuperStocker1
(56.68)
Submitted: 8/14/2008 9:23:55 PM :
Start Price:
$29.76
WPI Score:
+37.18
Breakout Upwards
Recs
jcdan5122
(33.50)
Submitted: 7/31/2008 6:28:02 PM :
Start Price:
$28.90
WPI Score:
+38.78
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)
Recs
AlphaMale11
(< 20)
Submitted: 7/22/2008 3:19:38 AM :
Start Price:
$29.52
WPI Score:
+34.86
possible takeover target
Recs
ThickCobra
(< 20)
Submitted: 5/23/2008 4:25:53 PM :
Start Price:
$28.54
WPI Score:
+47.05
Watson is expected to launch some great generics this year and increase it's production levels to meet the global demand.
Recs
warrenc2
(< 20)
Submitted: 5/12/2008 4:37:46 PM :
Start Price:
$28.41
WPI Score:
+49.16
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.
Recs
woodman220
(< 20)
Submitted: 4/24/2008 1:06:28 PM :
Start Price:
$29.13
WPI Score:
+45.15
Watson has generic Oxycontin. Watson is lowering costs. Watson has Oxytrol. Watson has good earnings estimates. Watson is west coast. PE is so so. P/S 1.27. Operating margin and ROE near 10%. Beta hovering around 1. Debt to equity close to .5. Yahoo earnings frowth estimates around 40%. Income about 140 million last year. sales growth and profit margins positive. currently near support levels. Great product line.
Recs
KWT8011
(87.00)
Submitted: 1/17/2008 6:55:20 PM :
Start Price:
$27.50
WPI Score:
+49.65
Buying what I know. Protonix, Fosamax, Effexor XR, Risperdal, and Depakote coming off patent in 2008 (thats about $10bil in sales combined). Even more in 2009.
Recs
sebou
(40.10)
Submitted: 4/11/2007 9:44:28 AM :
Start Price:
$27.14
WPI Score:
+56.06
7x free cash flows.
growth fcf for 7 years about 13% annually.
1.2 price/book
very cheap vs long term
Recs
skc0001
(< 20)
Submitted: 2/28/2007 12:50:42 AM :
Start Price:
$26.75
WPI Score:
+55.33
A value proposition
Recs
WilliamCrook2003
(52.05)
Submitted: 1/28/2007 6:16:26 PM :
Start Price:
$26.54
WPI Score:
+57.47
PROFIT
Recs
NetscribePhrmtcl
(96.46)
Submitted: 1/17/2007 1:26:33 AM :
Start Price:
$25.80
WPI Score:
+61.85
‘Watson revitalized with the acquisition of Andrx’. Watson Pharmaceuticals has the best of both worlds. The company makes both branded and generic drugs. Through internal product development and synergistic acquisitions of products and businesses, the Company has grown into a diversified specialty pharmaceutical company and will now operate with three segments namely Generic, Brand and Distribution.
The company has expanded its horizon with the recent acquisition of Andrx Corporation. Andrx distributes pharmaceutical products primarily to independent and chain pharmacies and physicians’ offices and is considered a leader in formulating and commercializing difficult-to-replicate controlled-release pharmaceutical products and selective immediate-release products. This acquisition is not only expected to strengthen the distribution channel of the company but also add $1.2 billion of annualized revenues in the year ahead. The outlook for 2007 for Andrx appears positive as it is expected to be driven by new approvals and royalty from Takeda’s drug Actoplus for the treatment of type 2 diabetes. This drug holds potential when we consider the fact that diabetes is the seventh leading cause of death in the US and is expected to grow at an average annual rate of 8.3% in 2007.
The growth for the company in the third quarter of 2006 has primarily come from recently launched authorized generic products including Oxycodone and Pravastatin sodium. Any fluctuations in the generic segment would have a serious impact on the overall revenues of the company as it contributes 80% to the overall revenues. One concern though for the company is the negative growth from its Branded product segment. However, we believe synergy with favorable acquisition of Andrx Corporation and positive outlook of the generic drug market in the upcoming year will help the company to grow in 2007.
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