Canaccord Genuity Reiterates Buy Rating, $100 PT on Watson Pharmaceuticals

In a report published Monday, Canaccord Genuity reiterated its Buy rating and $100.00 price target on Watson Pharmaceuticals

. Canaccord Genuity noted, “It was announced this morning that Mallinckrodt (subsidiary of Covidien) has received FDA approval for the 27, 36 and 54 mg dosage strengths of Concerta ER (~80% of total generic scripts – 18 mg is other ~20%). Mallinckrodt will launch the 27 mg immediately and plans to have the 36 and 54 mg available sometime in calendar Q1 of 2013. Mallinckrodt plans to file on the 18 mg in Q1 of 2013, though approval is likely some time out. While the financial impact to WPI is more limited (a Kudco approval had been factored into guidance and most Street EPS), the Mallinckrodt approval is a surprise and removes a potential sizeable upside driver to 2013 (limited or no competition).” Watson Pharmaceuticals closed on Friday at $86.10.