UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on Covidien plc
In a report published Monday, Goldman Sachs Group reiterated its Neutral rating on Covidien plc (NYSE: COV), and slightly raised its price target from $62.00 to $63.00.
Goldman Sachs noted, “On Monday, December 31, Covidien launched a generic version of the attention deficit hyperactivity disorder drug (ADHD) Concerta. The company will offer the product in 27, 36, and 54 milligram dose strengths, and Mallinckrodt intends to file an abbreviated new drug application for the 18mg dose in 1QCY13. The company will also have the 36mg and 54mg doses available in 1QCY13. Management indicated the company has six-month exclusivity on the doses approved today. For reference, Concerta was a $1bn+ branded product marketed by J&J, and Watson is the only other generic competitor. In conjunction with the FDA approval, Covidien raised guidance for the Pharmaceutical segment (17% of sales) from 1%-4% to 3%-6%. Total company targets are unchanged.”
Covidien plc closed on Friday at $56.31.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.