D.E. Shaw & Co. reduced its holdings to 8,325,743 shares (7.1%), by selling 1,321,139 from Aug. 28 through Oct. 14 at prices ranging from $22.11 to $24.01.

From a recent Mad Money show:"I want you to sell it. You just had a very big gain. I need you to take a profit and sell it now."

Obama Won't Obliterate Drug Stocks: Jason Ronovech, portfolio manager for the five-star Paradigm Select Fund, says health care stocks were unfairly slammed leading up to Barack Obama's election. His top picks include Endo Pharmaceuticals and Invitrogen.
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Endo Pharma (ENDP) was downgraded from Outperform to Neutral, Robert Baird said. $31 price target. New management team will likely bring a major revamp in the product line and pipeline. Stock is unlikely to outperform during this transition.

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The Chadds Ford, Pa-based company announced that its board approved a $750 million common stock buyback program. The company, which specializes in products that treat and manage pain, also said the repurchases will take place on a time to time basis depending on market conditions.

On Feb 22nd, the company reported solid fourth quarter and full year results with quarterly income of $50.6 million, or 38 cents a share, compared with $14.8 million or 11 cents a share a year earlier. For the period revenue rose 17% to $304.6 million, and for the year revenue jumped 19.4% to 1.086 billion.

"We are pleased to report another record-breaking quarter and year," said Charles A. Rowland, Jr., Chief Financial Officer. "These outstanding results were achieved during a year when we made significant investments to support our anticipated future growth”

It’s also good to see that analysts at Robert W Baird reiterate their outperform rating on the stock and increased their price target from $40 to $45. Endo will raise $379.5 million through a convertible debt offering and repurchase almost 11.9 million shares, the analysts mentioned in a note. The buyback should also drive EPS in 2008 and 2009.

So we have a buyback, record earnings, an outperform rating with increased price targets, and two well-known investors into the stock. It may be time to take a closer look.

D.E. Shaw & Co. raised its holdings to 12.9 million shares (9.6%) from the 7.5 million (5.6%) reported in July.

"The company clearly will have to defend its intellectual property, but they will be able to do it," the manager says. He sees the stock moving into the mid-30s.

Endo Pharma (ENDP) downgraded to Hold rating from Buy at Jefferies. Price target slashed to $31 from $37 while 2008 eps estimates hold at $2.17.

Endo Pharma (ENDP) downgraded to Neutral rating from Buy at UBS. Price target lowered to $38 from $40, and FY 2008 eps estimates drift down to $2.12 from $2.13.