Actavis, Inc. ( ACT ) and Kissei
Pharmaceutical Co., Ltd. recently announced the filing of patent
infringement lawsuits against Sandoz and Hetero. Sandoz and Hetero
are looking to launch their generic versions of Actavis/Kissei's
Rapaflo (4 mg and 8 mg), which is approved for the treatment of the
signs and symptoms of benign prostatic hyperplasia (BPH).
With the patent infringement lawsuit being filed within the
stipulated time period under the Hatch-Waxman Act, the FDA cannot
grant final approval to the generic versions of Rapaflo before Apr
8, 2016 or the court's decision whereby the patent is found
invalid/not infringed, whichever is earlier.
Rapaflo is a key product in Actavis' branded drugs segment. The
company is currently working on strengthening its branded product
portfolio and recently announced its intention to acquire
Warner Chilcott plc ( WCRX ) for about $8.5
The Warner Chilcott acquisition will help strengthen Actavis'
position in the women's health and urology markets. The company
will also gain a presence in the gastroenterology and dermatology
markets. Moreover, Actavis will gain a pipeline of 25 candidates
including 15 targeting the women's health market.
The successful completion of this deal will lead to the creation
of a leading global specialty pharmaceutical company with combined
annual revenues of about $11 billion. The combined company will
hold the third position in the US specialty pharmaceutical market
with annual revenues of about $3 billion. The deal is expected to
close by the end of this year.
Actavis currently carries a Zacks Rank #3 (Hold). With fewer
major patent expiries slated to occur in the next few years, we are
encouraged by Actavis' focus on building its branded portfolio.
At present, companies like Simcere Pharmaceutical
Group ( SCR
) and Santarus, Inc. ( SNTS ) look
well-positioned. While Santarus is a Zacks Rank #1 (Strong Buy)
stock, Simcere is a Zacks Rank #2 (Buy) stock.ACTAVIS INC (ACT): Free Stock Analysis ReportSIMCERE PHARMAC (SCR): Free Stock Analysis
ReportSANTARUS INC (SNTS): Free Stock Analysis ReportWARNER CHIL PLC (WCRX): Free Stock Analysis
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