Impax Laboratories Upgraded to BUY

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David Evanson and Randall Stanicky

Forbes.com, Winter, 2012

Canaccord Genuity specialty pharmaceutical analyst Randall Stanicky upgraded his Impax Laboratories (IPXL) rating to BUY from HOLD and raised IPXL’s price target 33% to $28, from $21. Mr. Stanicky noted five drivers to his theses:

(1) Headwinds reverse and catalysts emerge – FDA remediation is key, but other drivers are coming
Image representing Impax Laboratories as depic…

(2) Our 2013+ forecasts are now well above the Street, and we think investors are beginning to look beyond 2012

(3) IPX-066 on track with first brand product approval likely a late 2012 event and little NPV reflected in the stock

(4) Under-estimated generic pipeline next year and beyond – supported by our recent meetings with management

(5) Valuation support into the high $20s – [Sum of the Parts] and [Discounted Cash Flow] provide further comfort, which are helped by our now-higher 2012 to 2015 forecasts.