« Review: Grokker | Main | Healthcare & The FDA »

February 06, 2007

STOCK PICK: Barr Pharmaceuticals (BRL)

<title goes here>

Barr Pharmaceuticals, Inc., through its subsidiaries is responsible for manufacturing 120 generic and 25 proprietary pharmaceutical products. With its recent acquisition of Pliva, Barr Pharmaceuticals has jumped to third in global industry position. It has also increased revenues from 1.3 to 2.4 billion and added 30 additional European countries to its geographical reach. With a market cap of roughly 5.76 billion, Barr’s total debt is a minimal 15.87 million leading to a Debt/Equity ratio of .009. It also holds the industry’s second lowest PEG at 1.23 compared to the industry average of 1.67. Barr has also experienced strong success with its Plan B contraceptive in recent months and appears to be a noteworthy investment with recent news of many new product launches. In the past month, Barr has launched a generic version of Merck & Co. PROCSAR(R) as well as a generic version of Bristol-Myers Squibb Company’s METAGLIP. Barr’s future pipeline is promising with recent FDA approval of a generic version of Pfizer Inc.’s Zithromax and tentative approval of of Roche Laboratories Inc.'s KYTRIL, with final approval expected following the expiration of Roche’s patent in December. Barr Pharmaceuticals has exceeded analyst earnings estimates for second straight quarter. I also like the fact that democrats have taken control of the House and think this could be favorable for expansion of the generic drug market. I recommend Barr (BRL) and look to add it to my portfolio as a solid growth stock. For up-to-date financial statistics of Barr Pharmaceuticals please vist
BRL Key Statistics.

Posted by jcip at February 6, 2007 09:25 PM