Markets & Finance

Wachovia Keeps Strong Buy on Andrx

The U.S.Food and Drug Administration tentatively approved Andrx's (ADRX) abbreviated new drug application for a generic version of 24-hour Claritin. Wachovia reiterated its strong buy rating on the shares.

Analyst Michael Tong tells Standard & Poor's MarketScope that the FDA action indicates the company's product approval momentum is accelerating. He says this should help ease investor concerns regarding Andrx's ability to obtain timely FDA approval. Tong notes the company was first to file on generic Claritin D-24 and is entitled to 180-day marketing exclusivity, assuming successful litigation. He says his model does not assume future contributions from any generic Claritin products in the company's pipeline, so upside potential exists. Tong has a $75 price target on the shares.

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