UPDATE: Stifel Nicolaus Cuts PT to $40 on Endo Health Solutions on Competitive Headwinds

Stifel Nicolaus reiterated its Buy rating on Endo Health Solutions

but reduced its price target from $44 to $40. Stifel Nicolaus noted, "Facing generic entry from Impax on its older, non tamper-resistant formulation (non-TRF) of Opana ER on 1/1/13, Endo had hoped to force a decision from FDA (through a lawsuit) before year-end regarding 1) its withdrawal of non-TRF for safety reasons, 2) imminent entry of generics and 3) withdrawals of ANDAs referencing the old formulation. FDA does not intend to have a decision in that time-frame, opening the door for further competition on Opana ($300mn+). After a difficult 2012, we see near-term Opana headwinds given what we believe is near-certain generic entry." Endo Health Solutions closed at $28.29 on Friday.