Markets & Finance

JP Morgan Downgrades Andrx


JP Morgan downgraded pharmaceutical-company Andrx (ADRX) to underweight from overweight.

Analyst Corey Davis says the company reported a dismal quarter, much lower than already low expectations based on its own weak second quarter as well as widespread disappointment from all generics this quarter. While it is clear why the stock is down, he feels some of the revelations from the 10-Q suggest that further downside is likely to continue for sometime.

Although it may prove to be too Draconian, in light of its current quarter, in absence of any guidance from management, he cuts $1.57 2005 earnings-per-share estimate to 65 cents. He says if the company is able to unload its brand division, it could be highly accretive to this, but sees no likely buyer.


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