Analyst Steven Valiquette says he raised his sales estimates for the company's Tigan nausea drug after the FDA last week said it was illegal to sell a generic version of Tigan. For 2002, Valiquette says King should generate sales of $7 million to $9 million from Tigan. Due to the FDA action, Valiquette sees King gaining an additional $15 million to $20 million in Tigan sales going forward if it's successful in taking back all of its generic prescription share.
He raised the Tigan sales estimates to $25 million for 2003, $40 million for 2004, and $55 million for 2005 -- up from his former estimates of $7 million to $9 million for each year. Valiquette maintains his earnings per share estimates; he notes the incremental two cents to three cents in earnings per share that the company could capture from the FDA action strengthens the conviction of his $1.60 2003 earnings per share estimate.