Recommending SCRX Up to $28

Sciele Pharma, Inc. (SCRX) is a specialty pharmaceutical company engaged in the sale of prescription products for the treatment of cardiovascular, metabolic, obstetrical and gynecological, and pediatric and gastroenterological conditions and disorders. The company's broad focus and deep product pipeline offer substantial growth opportunities over the next several years.

Moreover, Sciele received a boost recently when the FDA approved the company's new Sular formulation. This removed a significant overhang from the stock. Sciele is set to launch the new Sular in March when users will be switched to the new formulation prior to the potential entry of generic Sular in June 2008.

The next step in Sciele's game plan is the successful conversion of users to the new Sular formulation prior to the potential entry of generics (Sular loses exclusivity in June 2008). While we acknowledge the fact that Sciele has a very short time-frame for achieving this objective, we have confidence in the company's ability to execute its plan successfully.

We believe the current share price represents an attractive entry point for long-term investors. We maintain our Buy rating on Sciele Pharma, and recommend purchase up to the $28 level. We believe the company has done a commendable job, so far, in executing its plans to protect the Sular franchise from generics.

Read the full analyst report on SCRX.

Read the full analyst report on SCRX