That's exactly the kind of break companies like Andrx and Watson Pharmaceuticals (nyse: WPI - news - people) yearn for.

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Late yesterday, Bristol-Myers (nyse: BMY - news - people) said in a regulatory filing that inventory issues could hurt its 2002 earnings, which are already expected to be low, and added that it had settled a lawsuit brought by Watson Pharmaceuticals (nyse: WPI - news - people).

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Watson Pharmaceuticals (WPI): is now our top idea with a catalyst-heavy path and less crowded stock creating an attractive set-up here.

FORBES: Specialty Pharma: 5 Themes for 2012; 4 Best Stock Ideas