Bear Stearns Ups Pharma Resources Estimates

Analyst Joseph Riccardo likes the drug maker's strong profits from its generic Prilosec drug to treat acid reflux

Bear Stearns raised its estimates on Pharmaceutical Resources (PRX ).

Analyst Joseph Riccardo says an upward revision reflects a profit contribution from the launch of its generic Prilosec drug to treat gastroesophageal reflux. Riccardo says Prilosec could contribute roughly $0.50 in incremental earnings per share in 2003, declining to $0.39 by 2005. He sees $0.42 fourth quarter earnings per share, and $2.20 for 2002 (excluding the potential positive impact of generic Prilosec).

Riccardo raised the $1.70 2003 earnings per share estimate to $2.25, which includes a $0.56 contribution from Prilosec, but excludes the potential impact from generic Paxil and Rebetol. He is keeping his outperform rating on the shares.

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