Diversification and appreciation

700 shares, 1 purchaser

Upgraded by First Albany from Buy to Strong Buy

"To hear some tell it, Adams Respiratory Therapeutics (ARXT) investors may have a bit more to worry about than the approaching end of cold-and-flu season -- a potential generic version of Adams' popular mucus thinner Mucinex."

Adams has grown rapidly since it launched Mucinex, supported by its Mr. Mucus cartoon spokes-blob. Sales were $61 million in fiscal 2004 and are projected to hit $400 million in the year ending this June.

But an application accepted by the Food and Drug Administration for a generic version of Mucinex by Pharmaceutical Holdings, Mutual Pharmaceutical and United Research Laboratories has remained largely off the Street's radar screens."