NEW YORK ( TheStreet) -- Shares of Endo Pharmaceuticals (ENDP - Get Report) rose in extended action late Wednesday after the Chadds Ford, Pa.-based drug developer received regulatory approval for its Fortesta gel product for the treatment of men with low testosterone.
Food and Drug Administration approved Fortesta as a Class III product for topical use, and Endo expects to launch the product in the United States in early 2011.
The stock was last quoted at $36.71, up 4.2%, according to Nasdaq.com, although trading was light at around 10,000 shares. The issue's trailing three-month daily average volume is around 1.5 million. Based on a regular session close at $35.22, the shares have appreciated by more than 70% in 2010.
Endo estimates nearly 14 million men in the United States have low testosterone and that roughly 1.3 million, or 9%, are being treated for the condition.Of the 25 analysts covering Endo's stock, eight rate it at strong buy, five at buy and 12 are at hold. Wall Street's median 12-month price target is $40, implying upside of more than 13% from current levels. The current average estimate of analysts polled by Thomson Reuters is for Endo to earn 94 cents a share on revenue of $461.1 million in the current quarter ending this month. That performance would be above its profit of 86 cents a share on revenue of $444.1 million in the September-ended quarter. Duncan Williams Inc., a Memphis, Tenn.-based investment banking firm, reiterated a strong buy rating on Endo's stock on Wednesday ahead of the news. The firm said it's modeling for 2011 sales of $14 million for Fortesta, and that it sees a "difficult reimbursement environment" for the product, as well as competitive pressures from "the overlapping launch" of Eli Lilly's (LLY) Axiron.