UPDATE: Jefferies Initiates Coverage On Amphastar Pharmaceuticals

In a note released Monday morning Jefferies analyst David Steinberg initiated coverage on Amphastar Pharmaceuticals AMPH with a Buy rating and a $14 price target.

Steinberg wrote, "Unlike most of its competitors, Amphastar has the skills and technology to successfully tackle some of the most challenging generic opportunities - particularly those in the high value injectable and inhalation niches."

Steinberg noted that Amphastar is able to differentiate itself from "traditional" generic drug companies through its vertical integration and "heavy" investment in R&D, a feature he said has positioned the company "very well" in generic injectables and inhalation markets.

Despite the Jefferies note, shares of Amphastar are trading over four percent lower.