Endo Health Solutions
) scored a legal victory over
) regarding the former's acute migraine drug Frova
(frovatriptan). A district court in the U.S. upheld the validity
of Endo Health's patent (5,464,864) on Frova and ruled that it
would be infringed by Mylan's generic version of the treatment.
The court while ruling in favor of Endo Health stated that Mylan
cannot sell its generic version of Frova in the U.S. before Nov
8, 2015 when the former's patent on the drug is scheduled to
expire (pending possible appeal by Mylan). We note that the two
companies had been entangled in a legal tussle on Frova since
2011 when Mylan filed an abbreviated new drug application (ANDA)
with the U.S. Food and Drug Administration (FDA) seeking to sell
its generic version of the therapy. The application was
subsequently challenged by Endo Health.
We note that Endo Health recently failed in its attempt to extend
its migraine portfolio beyond Frova when
) declined Endo Health's acquisition offer and accepted a more
lucrative deal from another company. Endo Health would have added
migraine drug, Zecuity, to its product portfolio had the
acquisition of NuPathe gone through. With the deal being
scrapped, Endo Health received termination fee worth $5 million
With the NuPathe deal not going through, we believe investor
focus will be on the fate of Endo Health's proposed acquisition
of Canadian specialty pharmaceutical company Paladin Labs Inc.
The transaction, cleared by the board of directors of both
companies, is expected to close in the first half of 2014. The
deal, which will strengthen Endo Health's portfolio
substantially, is expected to boost Endo Health's 2014 adjusted
earnings per share.
Endo Health carries a Zacks Rank #3 (Hold).
) is an example of a better-ranked stock with a Zacks Rank #1
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