Citi Reiterates Buy on Watson Pharmaceuticals (WPI)

Citi is out with its report today on Watson Pharmaceuticals WPI, reiterating Buy. In a note to clients, Citi writes, "WPI expects to launch Nulecit (a generic of SNY's Ferrlecit for treating iron deficiency anemia in chronic dialysis patients) in a few weeks following GeneraMedix's ANDA approval. Our model assumes Nulecit contributes 2011 sales/EPS of $30M (recorded in branded segment)/$0.05. The approval supported our ‘11E/‘12E EPS OF $4.02(+17%)/$5.08 (+27%) vs. the Street's $4.12 (+20%)/$5.15 (+28%). We reiterate our Buy rating on WPI." Citi maintains a $67 PT on WPI. Shares of WPI closed Thursday at $56.01.