First Albany Starts aaiPharma with 'Strong Buy'

Analyst Adam Greene says the specialty drug firm is positioning itself for strong future sales and earnings growth

First Albany initiated coverage of aaiPharma (AAII ) with strong buy.

Analyst Adam Greene says aaiPharma is a specialty drug firm that has operated for more than two decades as a contract firm for other drug companies; it has now transitioned to an integrated pharmaceutical concern. He says aaiPharma has acquired several products over the last two years, and is using its broad industry R&D experience to formulate, improve, and relaunch novel versions of older drugs.

Green thinks aaiPharma has a strong portfolio of core drugs, and is positioning itself for strong future sales and earnings growth. He notes shares are trading at a deep discount to the specialty drug group. He sees $1.12 2003 earnings per share, and has a $19 target.

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