Markets & Finance

CIBC World Upgrades Atrix Laboratories

Atrix Laboratories (ATRX) says the Food and Drug Administration reversed its decicion and approved its generic version of an acne gel. CIBC World upgraded the stock.

Analyst Mara Goldstein says she is upgrading Atrix to sector outperform from sector perform on the positive catalyst generated by the FDA's approval of the company's Abbreviated New Drug Application for its generic version of Benzamycin acne gel. She notes expectations for the generics business have been low -- appropriately so in her view.

However, Goldstein says the FDA's reversing its earlier decision, granting the company approval for generic Benzamycin, gives her greater confidence in Atrix' regulatory prowess. She notes that Benzamycin had sales of $41 million in 2003.

She kept EPS estimates of 39 cents for 2004 and $1.10 for 2005. She has a $30 price target on the stock.

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