Watson Pharmaceuticals, Inc.
) recently announced that it has gained US Food and Drug
Administration (FDA) approval for its generic version of
) Sanctura XR. The company intends to launch the product
Sanctura XR, which is approved for the treatment of overactive
bladder (OAB) with symptoms of urge urinary incontinence, urgency
and urinary frequency, posted sales of about $67 million in the
12 months ending July 31, 2012. The sales data is from IMS
Watson Pharma gained FDA approval for its generic version of
) hypertension drug, Avapro (75 mg, 150 mg and 300 mg), as well.
Avapro is also approved for the treatment of diabetic nephropathy
with an elevated serum creatinine and proteinuria (>300
mg/day) in patients with type II diabetes and hypertension.
The company intends to launch the product immediately.
According to IMS Health, Avapro branded and generic sales during
the 12 months ended August 31, 2012 were $390 million. Generic
versions of Avapro have already been launched by companies like
Meanwhile, Watson Pharma remains on track to complete its
acquisition of Actavis later this month or early next month. The
company, which gained European Commission (EC) for its proposed
acquisition of Actavis earlier this month, gained a positive vote
from the Federal Trade Commission (FTC) recently.
Watson Pharma will be required to sell certain products in
order to gain FTC approval. These products will be sold to Par
Pharmaceuticals, Inc. and
) generic division, Sandoz.
We view the upcoming acquisition of Actavis as a smart
strategic move by Watson Pharma. This deal, which is expected to
be immediately accretive, should help the company strengthen its
presence in the ex-US generics market and expand and strengthen
its presence and product portfolio. The acquisition will more
than double the company's commercial position in key European
markets as well as emerging markets, including Central and
Eastern Europe and Russia.
We note that this acquisition will make Watson Pharma the
third largest global generics company. We currently have a
Neutral recommendation on Watson Pharma.
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