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$$$MR. MARKET$$$ Loves PRX
by: mr_market63 (43/M)
Long-Term Sentiment: Strong Buy 09/18/03 03:27 pm
Msg: 6429 of 6458
I’m so depressed. The Red Sox once again have failed to take the AL East title. I think I’ll reach for some Serzone. Oooops..I can’t even do that because I lost all my money betting on the Red Sox. But there is a solution. I will ingest a generic version of Serzone, called Nefazodone. It’s cheap and it works great. Wow! I’m happy already.
Today I bought Par Pharmaceutical (PRX) at 72. I will sell it in 4 to 6 weeks at 83. Here’s why I like PRX:
Pharmaceutical Resources (PRX) is a holding company which, through its subsidiaries, develops and markets a broad line of generic drugs in the U.S.; develops and makes in small quantities complex synthetic active pharmaceutical ingredients.
PRX’s stock is up 283% over the last 12 months yet its PE is a very modest 27. This is a great value for the pumped up drug industry. In fact, the Value of $10,000 invested five years ago in PRX would be $ 167,875. Ladies and germs, it’s still not too late to get in. Here’s why:
How do generic drugs work? Simple…it’s like sitting next to the smart kid during the Thermodynamics final exam. Your work isn’t necessarily original, but you end up with the same grade when you get your report card. Isn’t this how everyone got through college? Fat, drunk, and stupid is no way to live your life, is it?
Net sales in the first half of 2003 increased 22%, year to year, reflecting new product launches, and other revenues (from a profit sharing agreement with Genpharm) in the current interim only. Gross margins widened, driven by the royalty revenue of omeprazole, but R&D costs and SG&A expenses rose significantly faster than revenues
The financial performance of PRX is simply amazing. Return on Equity was 44% in 2002. Return on Assets,over the same period, was 31%
Even one week before the Nefazodone coup, PRX stomped all over Paxil. Pharma Resources is a respected player in the U.S. market and will capture the majority of the generic market share (around 60%) for the rest of 2003. Pharma Resources will pick up $201 million in revenue from the sale of generic Paxil the rest of this year. Paxil sales last year totaled $2.3 billion. Holy cow! I didn’t know that many Red Sox fans existed. Generic penetration of Paxil will be 12% in the third quarter and 75% in the fourth quarter.
With all this new business, you’re looking at a jump to about $3.97/share of earnings in 2004. With the existing PE, this would propel the stock price to $107.19/share which is well past my target. Of course you don’t have to wait until 2004 to reap these rewards. Once the market realized the gravy train is here, the stock price will be bid up well before earnings materialize.
Among the 25 drugs currently awaiting approval by the FDA, PRX believes
that several may represent first-to-file opportunities entitling the Company, or its strategic partner, up to 180 days of marketing exclusivity or co-exclusivity. These products include testosterone 1% gel (Androgel(R))…Where exactly do you rub this anyway?
I am HUGE!!
$$$MR. MARKET$$$
by: mr_market63 (43/M)
Long-Term Sentiment: Strong Buy 09/18/03 03:27 pm
Msg: 6429 of 6458
I’m so depressed. The Red Sox once again have failed to take the AL East title. I think I’ll reach for some Serzone. Oooops..I can’t even do that because I lost all my money betting on the Red Sox. But there is a solution. I will ingest a generic version of Serzone, called Nefazodone. It’s cheap and it works great. Wow! I’m happy already.
Today I bought Par Pharmaceutical (PRX) at 72. I will sell it in 4 to 6 weeks at 83. Here’s why I like PRX:
Pharmaceutical Resources (PRX) is a holding company which, through its subsidiaries, develops and markets a broad line of generic drugs in the U.S.; develops and makes in small quantities complex synthetic active pharmaceutical ingredients.
PRX’s stock is up 283% over the last 12 months yet its PE is a very modest 27. This is a great value for the pumped up drug industry. In fact, the Value of $10,000 invested five years ago in PRX would be $ 167,875. Ladies and germs, it’s still not too late to get in. Here’s why:
How do generic drugs work? Simple…it’s like sitting next to the smart kid during the Thermodynamics final exam. Your work isn’t necessarily original, but you end up with the same grade when you get your report card. Isn’t this how everyone got through college? Fat, drunk, and stupid is no way to live your life, is it?
Net sales in the first half of 2003 increased 22%, year to year, reflecting new product launches, and other revenues (from a profit sharing agreement with Genpharm) in the current interim only. Gross margins widened, driven by the royalty revenue of omeprazole, but R&D costs and SG&A expenses rose significantly faster than revenues
The financial performance of PRX is simply amazing. Return on Equity was 44% in 2002. Return on Assets,over the same period, was 31%
Even one week before the Nefazodone coup, PRX stomped all over Paxil. Pharma Resources is a respected player in the U.S. market and will capture the majority of the generic market share (around 60%) for the rest of 2003. Pharma Resources will pick up $201 million in revenue from the sale of generic Paxil the rest of this year. Paxil sales last year totaled $2.3 billion. Holy cow! I didn’t know that many Red Sox fans existed. Generic penetration of Paxil will be 12% in the third quarter and 75% in the fourth quarter.
With all this new business, you’re looking at a jump to about $3.97/share of earnings in 2004. With the existing PE, this would propel the stock price to $107.19/share which is well past my target. Of course you don’t have to wait until 2004 to reap these rewards. Once the market realized the gravy train is here, the stock price will be bid up well before earnings materialize.
Among the 25 drugs currently awaiting approval by the FDA, PRX believes
that several may represent first-to-file opportunities entitling the Company, or its strategic partner, up to 180 days of marketing exclusivity or co-exclusivity. These products include testosterone 1% gel (Androgel(R))…Where exactly do you rub this anyway?
I am HUGE!!
$$$MR. MARKET$$$
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