Morgan Stanley Reiterates Overweight Rating on Watson Pharmaceuticals

In a report published Monday, Morgan Stanley reiterated its Overweight rating on Watson Pharmaceuticals WPI. Morgan Stanley noted, “We did not know that Covidien was pursuing generic Concerta (we were not aware of any Paragraph IV litigation), nor that it would qualify for exclusivity on the 27, 36, and 54 mg doses (85% of total franchise IMS sales). The 27 mg dose (15% of sales) launches immediately, and Covidien plans to launch the 36 and 54 mg doses (70% of sales) in 1Q:13. According to Covidien's press release, exclusivity is triggered upon commercial launch of each respective dose.” Watson Pharmaceuticals closed on Friday at $89.04.