Warner Chilcott Plc (WCRX), Endo Health Solutions Inc (ENDP): An Undervalued Play in Pharma

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More importantly, a recent FDA decision not to block generic versions of Endo Health Solutions Inc (NASDAQ:ENDP)’s generic pain killer, Opana ER, would shave $120 million from its annual sales projections. However, these negatives have been factored into the stock price after a 7% drop couple of weeks back.

Foolish bottom line

Actavis represents generic drug makers looking to boost their size through acquisitions. This strategy works initially, but sooner or later, companies realize that there are limitations and then the focus turns on boosting profitability through specialty plays. This makes companies like Endo Health Solutions Inc (NASDAQ:ENDP) better takeover candidates.

The article An Undervalued Play in Pharma originally appeared on Fool.com and is written by Jacob Wolinsky.

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