ANI Pharmaceuticals (ANIP)

[Just the facts maam]

Toomanyjobs, even assuming ANI had no more accrued tax deduction from previous lossesr of the two companies and assuming ANI were assessed the 36.8 % corporate tax rate that a company like Akorn pays, the deal would still add $0.22 to the the EPS per year. A 12.6% increase in EPS according Roth is only worth a 5.6%. In reality ANI only paid a little over 5% in tax last quarter and is not expected to start paying the full corporate tax rate until late 2016.

The EPS should increase somewhere between $0.22 between $0.33 depending on how the amount of deduction from previous losses that can still be applied.

From ANI Release

BAUDETTE, Minn., July 1, 2014 /PRNewswire/ -- ANI Pharmaceuticals, Inc. (Nasdaq: ANIP) today announced that it has acquired the NDA for Lithobid® (lithium carbonate extended release 300 mg tablets) from Noven Therapeutics, LLC. Total consideration for the product was $12 million including an $11 million upfront payment and a $1 million future milestone payment. ANI is expected to launch Lithobid® in July 2014 under its own label. The transaction is immediately accretive and is expected to generate approximately $4 million in revenues and $3.9 million in non-GAAP EBITDA annually.

From the fly on the wall.

ANI Pharmaceuticals acquisition favorable, says Roth Capital
After ANI (ANIP) bought the rights for Lithobid from Noven for about $12M, Roth Capital expects the deal to be about 15c accretive to ANI's EPS. The firm adds that ANI already manufactures Lithobid, which the firm believes should reduce the execution risk associated with the deal. The firm raised its price target on ANI to $40 from $38 and has a Buy rating on the shares.

On the plus side ROTH just increases the surprise factor when ANI beats market expectation. This generally draws in investors.