UPDATE: Janney Capital Markets Initiates Coverage on Impax Laboratories with Buy Rating, $30 PT as The Last Mid-Cap Generics Company Standing

In a report published Wednesday, Janney Capital Markets analyst Jim Molloy initiated coverage on Impax Laboratories IPXL with a Buy rating and $30.00 price target. In the report, Janney Capital Markets noted, “We are initiating coverage of Impax Laboratories (IPXL) with a BUY rating and $30 fair value. IPXL combines a solid generics business (Global) with a decent backlog of pending ANDAs, with a branded drug discovery and commercialization business (Impax) that currently has one late stage product candidate for Parkinson's disease (Rytary) pending approval from the FDA. Though recent challenges with its manufacturing facility in Hayward, CA involving an FDA Warning Letter & multiple Form 483 letters have held down the stock price, we believe that IPXL management & the Board of Directors fully understands the negative impact of this issue and have taken the appropriate steps to remedy it, including asking for the retirement of CEO & founder Larry Hsu. With no debt on the balance sheet and $400M+ in cash, we believe that IPXL will ultimately resolve its manufacturing problems and tap its generics potential over the 2014-2015 timeframe.” Impax Laboratories closed on Tuesday at $22.70.