UPDATE: Canaccord Genuity Downgrades Impax Laboratories to Hold Following FDA Warning Letter

Canaccord Genuity downgraded Impax Laboratories IPXL from Buy to Hold and lowered the price target from $25.00 to $20.00. Canaccord Genuity noted, "We'd been holding out for a positive near-term remediation announcement as an event that could boost the stock and de-risk the story – that clearly didn't play out. Last night's release post FDA reinspection of Hayward now extends (and expands) the FDA challenges, removing that possible upside catalyst. The questions that matter from here are: (1) where will the stock go post sell-off today? We see it settling at ~$16-17 and range bound pending remediation – not likely in 2013; and (2) is this the event that brings more formal take-out interest – unclear but questions here likely pick up and should introduce some support." Impax Laboratories closed at $20.00 on Monday.