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Orbimed Advisors Bullish on Watson Pharmaceuticals (WPI)

Orbimed Advisors, the world’s largest healthcare investment firm, is bullish on Watson Pharmaceuticals Inc. (NYSE: WPI). In a filing, Orbimed said that it added $24 million worth of WPI stock in the first quarter to its $85 million prior quarter position.

In fact, Orbimed is not the only fund that added to its position in WPI during the first quarter. Visium Asset Management, a healthcare focused hedge fund, also added 1.1 million shares to its 0.2 million share prior quarter position in WPI. Another fund that added to its WPI position was Sectoral Asset Management.

Based in Parsippany, New Jersey, Watson Pharmaceuticals is an integrated global pharmaceutical company focusing on the development, manufacturing, marketing, sale and distribution of generic and brand pharmaceutical products.

On Thursday, Watson Pharmaceuticals confirmed that its subsidiary, Watson Laboratories Inc. filed an Abbreviated New Drug Application (ANDA) with the U.S. FDA seeking approval to market Testosterone gel, 1%.

WPI’s 1% testosterone gel product is a generic version of Testim® 1%.

Watson released its most recent quarterly results (Q1) last month. The company reported first-quarter net income of $208.8 million, or $1.64 per share, compared with $111.9 million, or $0.89 per share reported for the same period in the previous year. Revenue for the quarter rose 74% to $1.5 billion, compared with $876.5 million reported in the first quarter of 2011.

Paul Bisaro, President and CEO of Watson Pharmaceuticals, said last month that substantial double-digit revenue growth across the company’s three businesses drove an 84% increase in non-GAAP earnings per share.

Watson Pharmaceuticals shares are marginally higher in early trading today. At last check, the stock was trading 0.14% higher at $72.86. Year-to-date, WPI shares have gained 20.73%, outperforming the S&P 500, which has gained 5.01% in the same period.

 


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