Noven Shares Rise As Analyst Boosts Outlook

NEW YORK (AP) — Shares of Noven Pharmaceuticals Inc. gained ground Tuesday after a Jefferies & Co. analyst upgraded his rating on the stock, citing the growth potential for its estrogen and ADHD products.

The stock rose 50 cents, or 4.9 percent, to reach $10.78 in midday trading. Shares have traded between $7.54 and $13.44 over the last 52 weeks.

Jefferies analyst David Windley upgraded the stock to "Hold" from "Underperform" and raised the price target to $11 from $10. He said new leadership at the company has taken steps to improve sales of the Vivelle-Dot estrogen patch, which the company sells through a joint venture with Novartis called Novogyne. Other areas set for improvement include sales of the attention deficit hyperactivity disorder drug Daytrana, which it sells with Shire.

Miami-based Noven focuses on making skin patches for drug delivery.

"Management's actions have positioned the therapeutic and transdermal segments for profitability," he said in a note to investors.

Vivelle-Dot continues gaining market share, he said, as management refocuses its marketing efforts. Meanwhile, the company is focusing on improving Daytrana's profit margin after several years of manufacturing issues cut into sales.