) recently launched its generic version of
Endo Health Solutions'
) Lidoderm (lidocaine topical patch 5%). Actavis' generic version
was launched under an exclusive settlement agreement with Endo
and and Teikoku Seiyaku Co., Ltd. The companies had entered into
a settlement agreement in May 2012.
Lidoderm is used for the relief of post-shingles pain and
generated U.S. sales of $1.4 billion for the twelve months ending
May 31, 2013, as per IMS Health Data. The generic Lidoderm launch
is an important launch for the company - Actavis believes
it is entitled to 180-days exclusivity under the Hatch Waxman
Actavis launched its generic version of another product as
well - Endo's Opana ER (oxymorphone hydrochloride
extended-release tablets, 5 mg, 10 mg, 20 mg, 30 mg and 40 mg).
The company had gained FDA approval for these dosages in Jul
2013. We note that Actavis was already marketing its generic
version of the 7.5 mg and 15 mg dosage strengths of Opana ER.
Opana ER, an opioid agonist, is approved for the relief of
moderate to severe pain in patients requiring continuous
around-the-clock opioid treatment for an extended period of time.
According to IMS Health, Opana ER sales in the U.S. for the 12
months ended May 31, 2013, were about $461 million.
Currently, Actavis is facing a patent infringement lawsuit
regarding the sale of its generic versions of Opana ER.
Actavis is a Zacks Rank #2 (Buy) stock. Earlier this year,
Actavis had announced its intention to acquire
). We are positive on this deal which makes strategic and
financial sense. The deal, which is scheduled to close early in
the fourth quarter, is expected to be immediately accretive.
Moreover, it will provide strong operating cash flow and allow
Actavis to de-lever its balance sheet. The tax rate will also be
significantly below current levels.
Other companies doing well include
Supernus Pharmaceuticals, Inc.
), a Zacks Rank #1 (Strong Buy) stock.
ACTAVIS INC (ACT): Free Stock Analysis Report
ENDO PHARMACEUT (ENDP): Free Stock Analysis
SUPERNUS PHARMA (SUPN): Free Stock Analysis
WARNER CHIL PLC (WCRX): Free Stock Analysis
To read this article on Zacks.com click here.