Nomura Securities Starts Impax Laboratories (IPXL) at Neutral

Nomura Securities initiates coverage on Impax Laboratories (NASDAQ: IPXL) with a Neutral rating and a price target of $40.00.

Analyst Shibani Malhotra commented, "We initiate coverage of Impax Laboratories, Inc. (IPXL), a specialty and generic pharmaceutical company that specializes in controlled release technology, with a Neutral rating and a DCF-based target price of $40. Impax shares have gained 34.8% YTD through September 24 (versus a 1.0% gain for the DRG and a 6.2% decline for the S&P 500), following three major upside catalysts: the approval of Rytary; the Tower holdings acquisition; and the resolution of the Hayward, California, facility Warning Letter. While we view the resolution of Impax’s Warning Letter as positive, we expect investor focus to shift to whether the company can begin to generate new product approvals from the facility. Net, we see risk/reward as balanced at current levels, given Impax’s limited high-risk/high-reward generic pipeline, the execution risk associated with the ongoing Rytary launch, and the potential for further business development activity to be announced at any time."

For an analyst ratings summary and ratings history on Impax Laboratories click here. For more ratings news on Impax Laboratories click here.

Shares of Impax Laboratories closed at $40.48 yesterday.

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