Valeant Pharmaceuticals International, Inc.
) announced that the U.S. Food and Drug Administration (FDA) has
cleared their antibiotic for the treatment of bacterial vaginosis
(BV), metronidazole 1.3% vaginal gel. Actavis expects to launch
the product later this year.
Last year, Actavis had entered into an agreement with Valeant to
acquire worldwide rights to metronidazole 1.3% vaginal gel for
the treatment of BV. As per the terms of the agreement, Actavis
agreed to acquire the drug on FDA approval.
In exchange, Valeant will receive up to $57.0 million
comprising an upfront payment of $1.0 million and certain
milestone payments up to $11.0 million. It also includes
guaranteed royalties for the first three years of
commercialization of metronidazole 1.3%. Actavis will continue to
pay royalties to Valeant after the first three years of
commercialization as well.
Metronidazole 1.3% provides a convenient single-dose alternative
to currently available metronidazole vaginal gel 0.75% for
patients with BV. According to the Centers for Disease Control
and Prevention, BV is the most common vaginal infection in women
between 15 to 44 years. As per IMS Health, the U.S. BV market is
estimated to be worth approximately $140 million annually.
Approval of metronidazole 1.3% boosts Actavis' branded product
portfolio. The company has been working on strengthening this
portfolio for sometime now. Last month, Actavis announced its
intention to acquire
Forest Laboratories Inc.
). The acquisition will lead to the creation of a specialty
company with sales of more than $15 billion per year, a
well-diversified suite of products and a presence in varied
The Forest Labs acquisition will push up Actavis' branded
products revenues to 50% of total combined revenues from the
current level of 30% of the standalone company's revenues. The
Forest Labs acquisition will also bring about significant
synergies and boost earnings and revenues.
ACTAVIS PLC (ACT): Free Stock Analysis Report
FOREST LABS A (FRX): Free Stock Analysis
DOCTOR REDDYS (RDY): Free Stock Analysis
VALEANT PHARMA (VRX): Free Stock Analysis
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Actavis carries a Zacks Rank #2 (Buy). Other well-ranked stocks
in the health care sector include
Dr. Reddy's Laboratories Ltd.
), a Zacks Rank #1 stock.