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Follow Up: Barr Labs

Barr Labs (BRL) are the people behind the morning after pill.

Amidst a wave of bearishness, we wrote favorably about the company on September 9th.

Shares were changing hands at $54 when we decided Barr was takeover bait and advised readers to an immediate strong buy rating on the stock:

2005 has been a dynamite year thus far for many manufacturers of generic drugs. Ivax Pharmaceuticals got snatched up by Israeli generic drug firm Teva. We think Barr Labs is the next one to go. Rivals like Teva and Watson like Barr's lucrative oral contraceptives franchise. Women's health in general is an attractive, underserved niche. If Barr can get FDA approval for over the counter use of Plan B, other larger firms will give BRL's healthy balance sheet a second look. Barr's enterprise value is well worth the taking.
We're giving the company 18 months before they either get approval from the FDA, get acquired, or best of all, both.

On yesterday's conference call, Barr said revenues for the first quarter of fiscal 2006 jumped to $310 million from the $245 million accrued during the same period year ago.

Shares are up $3 dollars since we published our note.

posted by Catablast! Media Group @ 12:55 PM