Medicis Pharmaceutical Downgraded to HOLD

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David Evanson and Randall Stanicky, Winter, 2012

Canaccord Genuity specialty pharmaceutical analyst Randall Stanicky downgraded his rating on Medicis Pharmaceutical Corp. (MRX) shares to HOLD from BUY and lowered his price target to $36 from $38. Of MRX, Mr. Stanicky said:

“Our thesis on MRX has not played out as SOLODYN has clearly seen volatility as the drive for managed care coverage plays out, and our take-out [i.e. acquisition] thesis has been pushed out – though not eliminated. We don’t see any meaningful downside and still see valuation support on what is an inexpensive asset base, but we struggle to find any meaningful catalysts or drivers of upside to numbers.”