Avanir Shares Rebound As Analysts Offer Defense On Heels of 13% Drop

Avanir Pharmeceuticals

stock plummeted yesterday after Gravity Research said AVNR “engaged in illegal off-label marketing of Nuedexta” and recommended a strong SELL. It closed at $4.79 on Wednesday, a 13% decrease. This was the biggest drop of AVNR in three years. Today, several analysts upgraded their ratings to BUY. Summer Street Analyst Carol Werther spoke with AVNR management who denied the allegations. She initiated BUY with a $17 PT. Analyst Mario Corso with Mizuho also upgraded AVNR to BUY with a $11 PT. Corso said the concerns were “off the mark”. Canaccord analyst Ritu Baral went even further to note AVNR's “robust” patents and high probability of winning the generic lawsuit. Baral recommends BUY with $6 PT. AVNR closed at $4.99 today.