Piper Jaffray Neutral On Endo Pharmaceuticals (ENDP)

Piper Jaffray has a Neutral rating and a $39 price target on shares of Endo Pharmaceuticals ENDP. In a note sent to clients, Piper Jaffray writes, "Yesterday, Endo announced that the FDA approved Fortesta, a 2% gel formulation of testosterone for the treatment of male hypogonadism. Though the dramatic growth in the testosterone market should allow the product to gain a foothold, the well-established presence of other gel-based products points to niche-like status for Fortesta in our view. We believe peak sales of up to $130M are realistic. We further believe that longer-term Street estimates are already reflecting meaningful contribution from Fortesta. With the continued uncertainty over Lidoderm and limited prospects for strong EPS growth beyond 2011 (in the absence of another acquisition), we would continue to stay on the sidelines. We reiterate our Neutral rating and $39 price target on ENDP." Shares of ENDP closed at $35.22 yesterday, up 1 cent.