Specialty pharmaceuticals, biotech, and even big cap pharma are exhibiting great relative price performance.  One that we just purchased Monday, Akorn, Inc. (AKRX)  on a sharp pullback based on recent news that the 10k would be delayed, a director just resigned, and an analyst at Sterne Agee just warned of competition to the company’s biggest seller, an eczema psoriasis cream that is coming to the market from Actavis.  So what’s there to like?  Plenty according to Merrill Lynch analyst, Sumant Kulkarni.  He published a research note on 3-10-15

“AKRX stock is down 15% today mainly on last night’s news that competition has entered on clobetasol cream. If we drop AKRX franchise (cream, ointment) contribution down to 0 our base DCF value of $60 would drop by $8/share (13%). We believe the magnitude of this move is unjustified and presents a particularly good buying opportunity on AKRX.”

We figure the news can’t be that bad as savvy billionaire founder and Chairman of the Board, Kapoor purchased 19,000 shares at $44.26 on the same day. Even at higher prices, the CEO Rai purchased 5000 shares at $47.70 on 3-3-15.  With the stock trading well under the Chairman’s and CEO’s purchase price and the 10k due to be filed tomorrow, the sentiment could rapidly change for this beaten down specialty pharma.