) recently entered into a partnership deal with a non-profit
pharmaceutical company, Medicines360. The companies are
collaborating to reduce cost as a barrier to accessing women's
Under the deal, Actavis gained commercial rights in the US and
Canada to the LNG20 intrauterine device (IUD) for $50 million.
Actavis may end up paying up to $125 million on the achievement
of milestones. Moreover, Medicines360 will receive royalties on
net sales per year.
LNG20 is currently in phase III development in the US where it
could be launched next year provided it gains FDA approval. While
Actavis will market the IUD in the US and Canada commercially,
Medicines360 will provide the same at a significantly lower price
in public sector clinics.
We note that LNG20 was developed by Uteron Pharma, which was
acquired by Actavis earlier this year. Medicines360 had acquired
commercial rights for LNG20 in the US and some other countries
from Uteron. While marketing rights in Western Europe and certain
other regions remain with Actavis, Gideon Richter is a partner
for certain European countries. LNG20 is currently under review
in the EU and could be launched this year.
While Actavis continues to work on driving generic product
sales, the company is also working on strengthening its branded
product portfolio. Last month, Actavis announced its intention to
Warner Chilcott plc
) which will result in 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
Actavis currently carries a Zacks Rank #3 (Hold). Among
) currently looks well-positioned with a Zacks Rank #2 (Buy). In
the broader pharma sector,
) currently looks attractive with a Zacks Rank #1 (Strong
ACTAVIS INC (ACT): Free Stock Analysis Report
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