Top Performer for Thurs: Par Pharmaceutical (PRX)

Par Pharmaceutical Companies, Inc. (PRX - Snapshot Report) received a brokerage firm upgrade today, which is helping it to gain during a rather muted morning session.

In addition, PRX has been enjoying rising earnings estimates that have pushed the 2009 and 2010 Zacks Consensus Estimates higher in just the past 7 days.

The company made the Zacks #1 Rank Top Performers List for Thursday with shares that are up approximately 4.4%. Volume is at 716,000 shares; above the daily average of 301,000.

Par Pharmaceutical develops, manufactures and markets generic drugs and innovative branded pharmaceuticals for specialty markets.

It is part of the Medical-Generic Drugs industry. There are 3 other names from this space on today's Zacks #1 Rank List: Dr. Reddy's Laboratories Ltd. (RDY - Analyst Report), Hi-Tech Pharmacal Company, Inc. (HITK - Snapshot Report) and Impax Laboratories, Inc. (IPXL - Snapshot Report).

Earnings Estimates

For this year, the Zacks Consensus Estimate is at $1.93 per share, which is up 2.7% from $1.88 in 7 days and up 9.7% from $1.76 in 2 months.

Looking toward next year, the Zacks Consensus Estimate is pegged at $1.25, marking a 3.3% gain in the past week from $1.21. Furthermore, the guidance has advanced more than 20% in the past 60 days.

Recent Events

Par Pharmaceutical reported its second-quarter results on Aug 4. Since that time, some noteworthy events include:

• PRX receiving, on Sep 10, final approval from the FDA for nateglinide tablets; a generic version of Novartis' Starlix. The tablets are to improve glycemic control in adults with Type II diabetes mellitus.

• PRX gaining approval, on Aug 18, from the FDA for a clonidine transdermal system, a generic version of the Catapres TTS high blood pressure patch. This is the first generic 7-day patch for the treatment of hypertension.

• On Aug 17, PRX announced that it won a patent dispute over the pain drug Ultram ER.

Second-Quarter Results

In early August, Par Pharmaceutical reported adjusted earnings per share of 65 cents on total revenues of $404 million for its second quarter.

The earnings result reversed a year-ago loss and also topped the Zacks Consensus Estimate by more than 35%. Meanwhile, revenue soared year over year from $112.9 million.

The big star of the quarter was Metoprolol, as net sales reached $306 million, up 173%. Metoprolol is the authorized generic version of AstraZeneca's Toprol XL, a treatment for angina, high blood pressure and heart failure.