HOW WILL THE LAUNCH OF WATSON’S GENERIC DRUG AFFECT SHIRE?

 
Kasmira Jefford
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SAVVAS NEOPHYTOU PANMURE GORDON
We expect the stock to be under pressure in trading as the market appraises the impact of likely new generic competition to the company's $500m franchise Adderall XR. We downgrade our forecasts by 6.3 per cent for 2012 and reiterate our Sell recommendation.

PETER WELFORD JEFFERIES
FDA has approved the first ANDA generic Adderall XR for Actavis, which while a known overhang for Shire has come sooner than expected...Longer-term this may be an opportune time to buy but with several now anaemic quarters ahead and some risks still outstanding, we retain a Hold.

MARK CLARK DEUTSCHE BANK
Shire has been living with the threat of additional generic competition to Adderall XR for many years. Nevertheless [it] is still a surprise. The impact on consensus earnings per share will be largely concentrated on near-term numbers as we believe most observers already assumed generic competition.