Elementary, My Dear Watson
Make a commentBy Ed Silverman // March 1st, 2007 // 3:19 pm
One doesn’t need to be a sleuth to understand why Wall Street is dubious about Watson Pharmaceuticals. There’s just no telling when the generic drugmaker will straighten out problems at a Florida manufacturing plant, which Watson picked up when it bought Andrx four months ago.
This will be “the year of living dangerously” for Watson, Aaron Gal, a drug-industry analyst at Sanford Bernstein, tells TheStreet.com. “Earnings are critically dependent on [an] FDA decision which [has] been delayed and to which we have limited visibility.”
This hasn’t been a great week for stocks, but Watson is down some 10 percent over the past five trading days. Here’s why:
Watson Execs Have No Idea When FDA Will Be Done;
And Watson Will Miss 2007 Earnings Expectations;
This is the Tuesday Earnings Release.
[tags]Watson Pharmaceuticals[/tags]