Alpharma shares rise on higher Q1 profit, Flector sales
BRIDGEWATER, N.J.—Shares of Alpharma Inc. rose Monday after the company reported a huge increase in first-quarter profit following the launch of its pain patch Flector.
A Bank of America analyst maintained his "buy" rating on the company.
Shares of the pharmaceutical and veterinary medicine manufacturer rose 98 cents, or 4 percent, to $25.72.
Alpharma on Monday reported net income soared to $163.1 million, or $3.77 per share, from $12 million, or 28 cents per share, in the prior-year period.
Flector, launched in January, accounted for $24.3 million of the company's $66 million in pharmaceutical revenue for the quarter.
Alpharma also reaffirmed its 2008 earnings outlook, which came within analyst expectations.
Bank of America analyst Frank H. Pinkerton on Monday said that Alpharma's share price is relatively inexpensive because it reflects the value of the company's animal health business, but not its budding pain pharmaceuticals division. He has a price target of $41 on shares.
Cowen & Co. analyst Ian Sanderson, however, has a "neutral" rating on Alpharma shares, as he believes the stock is trading at an appropriate price.
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