Watson Pharmaceuticals "neutral"

05/28/08 - Credit Suisse

NEW YORK, May 28 (newratings.com) - Analyst M Goodman of Credit Suisse maintains his "neutral" rating on Watson Pharmaceuticals Inc (WPI). The target price is set to $33.

In a research note published yesterday, the analyst mentions that although the US benign prostatic hyperplasia (BPH) market continues to expand, the company's revenues in this segment would decline, with the entry of the Flomax drug in the forthcoming year. Watson Pharmaceuticals expects to receive the approval for Silodosin in BPH in 4Q08 and intends to launch the product in early-2009. The market for the product is unlikely to be large enough to drive robust growth for the company in the near term, the analyst says.