Recently, Mallinckrodt, the Pharmaceuticals business of
), revealed that it has inked an agreement with Xanodyne
Pharmaceuticals, an integrated specialty pharmaceutical company
with expertise in pain management.
Per the agreement, Mallinckrodt bought Xanodyne's Roxicodone's
(oxycodone hydrochloride tablets USP) in 5, 15 and 30 mg dosage
strengths and acquired all rights to the Roxicodone New Drug
Application (NDA). Roxicodone is approved for moderate to severe
pain management and is used where the application of an opioid
analgesic is necessary. The drug is currently available in the U.S.
The companies did not provide any financial details.
The inclusion of Roxicodone has enhanced Mallinckrodt's pain
management product portfolio. Mallinckrodt is a leading
manufacturer of bulk acetaminophen in the world and the largest
supplier of opioid pain management drugs in the U.S. It also ranks
in the top 10 of prescription-based pharmaceutical manufacturers in
the U.S. Exalgo and Pennsaid are its front-line branded products,
which are successfully contributing to the company's sales.
In the last reported quarter, revenues from Covidien's Pharma
segment remained flat year over year at $501 million. Robust gains
in the Specialty Pharmaceuticals business were offset by lower
Contrast Product sales. Specialty Pharmaceuticals sales surged 21%
to $145 million spurred by solid revenue from the Exalgo and
Pennsaid products. Covidien is looking to spin-off Mallinckrodt
into a stand-alone company by mid-2013.
Recently, Covidien extended its support for the Sentinel Event
Alert issued by The Joint Commission regarding Safe Use of Opioids
in Hospitals. This particular issue provided a number of
suggestions that can be taken to avoid the risks associated with
opioid use among hospital in-patients. Covidien supported this
initiative to encourage safe and effective use of pain management
Covidien is a leading global health care products company with a
rich history of developing high-quality products in a
cost-effective manner. It competes with
Johnson & Johnson
), among others. The company plans to bolster its sales with the
help of strategic acquisitions.
Covidien remains committed to rolling out new products and
technologies, focusing on emerging markets, and boosting market
share in core segments through investments in its sales and
However, sustained pricing/procedure volume pressure,
fluctuating foreign exchange rates, a sluggish U.S. and European
economy represent major headwinds. We currently have a Neutral
recommendation on Covidien, which carries a short-term Zacks #4
COVIDIEN PLC (COV): Free Stock Analysis Report
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