CSFB Cuts Andrx to Hold

Analyst David Maris says fourth-quarter earnings were well below his estimates and the Wall Street consensus

Credit Suisse First Boston downgraded its rating on shares of Andrx Group (ADRX ) to hold from buy after the company reported $0.06 fourth quarter EPS (pro forma).

Analyst David Maris says fourth quarter EPS was well below his estimates and Street consensus. He says the quarter was particularly difficult with severe disappointments. He says the concern could carry through 2002 if the company doesn't deliver on several important branded, generic launches. He notes the company is facing patent challenges, court delays. He says management is in transition, looking for a permanent CEO. Maris thinks management is struggling with the execution of transition to generic/branded hybrid company during a gap in new product flow. He cuts his 2002 $3.90 EPS estimate to $2.78 and his $4.46 2003 estimate to $3.68. Maris has a $39.50 12-month price target.

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