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Or sign-in if you have an account.Empty pill bottles are filled with Apo-Clonidine, an antihypertensive or vascular stabilizer, at the Apotex Health Corp. plant in Toronto, Ont. Photo by Norm Betts/Bloomberg filesGeneric drug giant tex Health Corp.‘s dominance of the domestic pharmaceutical market is one of the reasons analysts are citing for their bullish stock recommendations as they initiate coverage of the newly public company.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorShares of Apotex (APTX:TSX) were trading at $34.62 at close Monday, up about 44 per cent from its June initial public offering price of $24.Analysts who have been adding the stock to their coverage universe see even more upside ahead, giving the Toronto-based company an average 12-month price target of $40.25 according Bloomberg data. The average is based on the calls of 12 analysts, with buy ratings across the board.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againTarget prices ranged from the low end of $36 at Raymond James Ltd. to the high end of $43 at RBC Capital Markets. BMO Capital Markets priced the shares at $39 while National Bank Capital Markets priced them at $36. At the high end, the upside to the stocks would be about 24 per cent.“Apotex has a leading position in Canadian generics with nearly one quarter market share, where its dominance hedges against competition,” Michael Nedelcovych, an analyst at TD Cowen said in a note, rating Apotex a buy with a 12-month price target of $40. TD Securities Inc. was one of the lead underwriters for the IPO, along with RBC Capital Markets and Bank of Nova Scotia.The pharma giant, which exports globally to 70 countries and has operations in Canada, the United States, Mexico and India, started trading on the S&P/TSX composite index on June 9.In several notes, analysts cited Apotex’s leading status in the Canadian pharma space, which they said appears unassailable, as a catalyst for the shares.“Our positive view is based on durable moat and number-one position in the Canadian generic/specialty pharma market,” BMO Capital Markets analyst Evan David Seigerman said.The company holds the number one spot in Canada for prescriptions filled, generics sales value and employee count, while also numbering among the top-10 generics companies in the U.S. and Mexico, Raymond James’s Michael Freeman said, with the Canadian division key to Apotex’s future plans.“Our constructive view is anchored in APTX’s ability to use its dominant (and growing) Canadian generics franchise as a funding engine for expansion into adjacent, higher-margin categories,” he said.Apotex management laid out plans to shift some of its sales to higher-margin specialty generics and brands and biosimilar drugs — copies of original biologic medications which are used to treat conditions such as rheumatoid arthritis and some types of cancer, among other chronic illnesses.Specialty generics expanded at a compound annual growth rate (CAGR) of 15 per cent from 2023 to 2025, but TD’s Nedelcovych expects this to slow to seven per cent, though he said there may be “upside” from Apotex’s weight-loss offerings in Canada, which include the generic equivalents to Ozempic and Wegovy.The brands and biosimilars segment is based on the recent purchase of Searchlight, Cumberland and CanPrev platforms, with TD calling for 17 per cent compounding from fiscal year 2026 to 2033.Current economic conditions ought to lift Apotex including a large and expanding pharmaceuticals/wellness market across the Americas valued today at greater than $1.1 trillion and a wave of expiring patents in the U.S. and Canada, which are “bad for pharma, good for APTX’s generics/biosimilars business,” Freeman said.But the path forward for shares isn’t all clear.“We flag that APTX’s growth plans are execution-heavy,” Freeman said, adding it will need to replace a profit windfall from the drug Revlimid, which is used to treat some forms of blood cancer.Apotex was founded in 1974 by Barry Sherman. In 2017, Sherman, and his wife, Honey, were found dead in their Toronto home. The company was sold to private equity firm SK Capital Partners in 2022. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.