Citigroup Maintains Buy, $48 Target on Endo Pharmaceuticals

Citigroup reiterates its Buy rating and $48 target price on Endo Pharmaceuticals ENDP as it looks at core products and pricing trends for the week ending 12/16/11. Citigroup notes on the company's Lidoderm: "~$1,090M Annual Run Rate Implied by 4-Week Average TRx's vs. Our 2011E Sales of ~$806M (+3%). 4Q11 QTD TRx growth is +2% vs. +1%/+1%/+5%/+1% in 3Q11/2Q11/1Q11/4Q10. Lidoderm represents ~23% of ‘12E sales, down from 52%in ‘09. Endo expects low single-digit '11 growth (vs. our +1% est.) supported by favorable patient demographics/new promo efforts. Lidoderm is priced at a WAC of $6.71/day following 5% & 5.4% price increases on 2/1/10 & 2/1/11, respectively." ENDP closed at $35 on Friday.