Pharmacy Industry News: Watson Pharmaceuticals Incorporated (WPI) EPS Estimates Cut by Goldman Sachs (GS) | Pharmacy Industry News

Pharmacy Industry News: Watson Pharmaceuticals Incorporated (WPI) EPS Estimates Cut by Goldman Sachs (GS)

Watson Pharmaceuticals Incorporated (WPI) EPS Estimates Cut by Goldman Sachs (GS)

Investment analysts at Goldman Sachs (NYSE: GS) lowered their EPS estimates on shares of Watson Pharmaceuticals Incorporated (NYSE: WPI) in a note issued to investors on Friday. They currently have a “buy” rating and a $78.00 price target on the company’s shares.

Separately, analysts at Jefferies Group (NYSE: JEF) reiterated a “hold” rating on shares of Watson Pharmaceuticals Incorporated in a research note to investors on Tuesday, December 20th. They now have a $70.00 price target on the stock. Analysts at Citigroup (NYSE: C) reiterated a “buy” rating on shares of Watson Pharmaceuticals Incorporated in a research note to investors on Tuesday, December 20th. They now have a $82.00 price target on the stock. Also, analysts at Canaccord Genuity reiterated a “buy” rating on shares of Watson Pharmaceuticals Incorporated in a research note to investors on Tuesday, December 20th.

Watson Pharmaceuticals, Inc. (Watson) is an integrated global pharmaceutical company engaged in the development, manufacturing, marketing, sale and distribution of generic and brand pharmaceutical products. It operates in three segments: Global Generics, Global Brands and Distribution. It operates in international markets, including Western Europe, Canada, Australasia, Asia, South America and South Africa with its commercial market being the United States of America. As of December 31, 2010, it marketed approximately 160 generic pharmaceutical product families and approximately 30 brand pharmaceutical product families in the United States, and distributed approximately 8,500 stock-keeping units (SKUs) through its Distribution Division. In January 2010, the Company acquired 64% of Eden Biopharm Group Limited (Eden). In May 2011, it acquired Specifar Pharmaceuticals S.A.

Shares of Watson Pharmaceuticals Incorporated traded up 0.23% during mid-day trading on Friday, hitting $62.19. Watson Pharmaceuticals Incorporated has a 52 week low of $51.39 and a 52 week high of $73.35. The stock’s 50-day moving average is $62.05 and its 200-day moving average is $65.82. The company has a market cap of $7.908 billion and a price-to-earnings ratio of 42.68.

Lawsuit Says Walgreen, Par Pharma Overcharged

A union benefits fund filed a class-action lawsuit against Walgreen Co. and Par Pharmaceutical Cos., accusing the companies of engaging in “at least two widespread schemes to overcharge” for generic drugs.

The lawsuit alleges drugstore chain Walgreen and generic pharmaceutical maker Par established a partnership in which Par manufactured and/or marketed generic versions of antacid Zantac and antidepressant Prozac in dosage forms that weren’t subject to private and governmental reimbursement limitations.

It further said Walgreen purchased those dosage forms from Par—at a cost substantially higher than the widely prescribed dosage forms—and then “systematically and unlawfully filled its customers’ prescriptions with Par’s more expensive products, rather than the inexpensive dosage forms that were prescribed by physicians.”

The suit was filed by the Union Food and Commercial Workers Unions and Employers Midwest Health Benefits Fund in the Northern District Court of Illinois. The union benefits fund is requesting a jury trial.

A Walgreen spokesman said the company doesn’t comment on pending litigation. A Par representative wasn’t immediately available to comment on the allegations.

The lawsuit alleges insurance companies, self-insured employers, and union health and welfare funds were overcharged, paying two to four times more than they would have had the prescriptions been filled as written. The union benefits fund’s complaint alleges members of the class-action suit paid “many millions of dollars” for the higher-priced generics.

The plaintiff is seeking unspecified damages, according to the complaint. The news was reported earlier by Bloomberg.

Walgreen in 2008 agreed to pay $35 million to the U.S., 42 states and Puerto Rico for overcharging state Medicaid programs by filling prescriptions with more expensive dosage forms of ranitidine, a generic form of Zantac and fluoxetine, which is a generic form of Prozac.

Excellence Services Program Delivers a Road Map to Successfully Guide the Pharmaceutical Industry Through the New Alliance Landscape

Facing patent cliffs and shrinking pipelines, the pharmaceutical industry is turning to alliances – either through in-licensing deals or M&A activities – as a way to maintain growth and profitability. It’s a sound strategy, but a difficult one to effectively put into practice. The process of identifying, negotiating and consummating a business is fraught with potential pitfalls. With 2012 shaping up to be a pivotal year for organizations to position themselves for future success, business development leaders need a relationship road map to help guide them through the new alliance landscape.

To that end, Best Practices, LLC has collected hundreds of best practices, narratives, and metrics around the issue of developing strategic alliances. To provide biopharma executives with the critical information they need to succeed in the highly competitive alliance/partnership arena, we have consolidated our best research and services regarding in-licensing and mergers & acquisitions into the Alliance Excellence Services.

The Alliance Excellence Services provides benchmarking and networking solutions that address a variety of mission-critical issues that includes:

In-licensing

Defining and executing the corporate in-licensing strategy

Staffing your group with the right talent and in the right numbers.

Shepherding compounds through the in-licensing process

Mergers & Acquisitions

Ensuring a strategic alignment with potential partners

Understanding and managing cultural issues with potential partners

Executing post-deal closure integration activities

Trends in merger and acquisition integration

This information and much more has been consolidated into the Alliance Excellence Services, a comprehensive database, report and solution service that provides valuable insights and data that business development executives can use to ensure superior results. These services contain valuable material for each phase of the alliance process. Pharmaceutical executives will find the primary and secondary research information provided in this product essential for helping pharma leaders to coordinate, communicate and execute the critical activities that are required to have effective partnerships.

Comments are closed.