Medicis Pharmaceutical Downgraded to HOLD

Forbes.com, Winter, 2012. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.

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.”