UPDATE: Piper Jaffray Lowers Watson Pharmaceuticals PT

In a research report published today by Piper Jaffray, Watson Pharmaceuticals (NYSE: WPI) is lowering its PT from $78 to $73 due to an FDA advisory committee voting against recommending Prochieve for approval.

“It is not yet clear if/how WPI will move forward with a study in a more homogeneous population. We are lowering our sales estimates for the product (recall that 8% progesterone gel is available under the trade name Crinone for infertility and had about $25M in 2011 sales) and lowering our price target to $73 from $78 (Prochieve would have accounted for around 7% of WPI's 2013 EPS),” Piper Jaffray said in the report.

Piper Jaffray maintains its Overweight rating on Watson Pharmaceuticals, which closed Friday at $58.14.