Watson Pharmaceuticals Inc.
) recently announced the launch of an authorized generic version of
Sunovion Pharmaceuticals Inc.'s Xopenex (levalbuterol HCl)
inhalation solution. Xopenex is used for the treatment or
prevention of bronchospasm in adults, adolescents and children of 6
years and above who are diagnosed with reversible obstructive
Watson Pharma launched its generic version of Xopenex, as part
of an agreement with Sunovion Pharmaceuticals.
According to IMS Health data, Xopenex sales in the US amounted
to $474 million in the twelve months ended June 30, 2012.
Earlier this month, Watson Pharma had announced that the US Food
and Drug Administration (FDA) has approved the Abbreviated New Drug
Application (ANDA) for its generic version of
) Pulmicort Respules (budesonide inhalation suspension 0.25mg/2mL
Pulmicort Respules is approved for controlling and preventing
asthma symptoms in children aged 12 months to 8 years.
We note that Watson Pharma is currently engaged in a patent
litigation with AstraZeneca and it intends to launch the product in
2012 subject to the outcome of the pending litigation.
As per IMS Health data, Pulmicort Respules sales were $1.1
billion in the US for the twelve months ending May 31, 2012.
We currently have a Neutral recommendation on Watson Pharma. The
stock carries a Zacks #3 Rank (Buy rating) in the short run.
We expect new generic product launches over regular intervals to
help drive the company's Global Generic segment sales, which
climbed 26% during the second quarter 2012 to $995 million, driven
by the generic launch of
) Lipitor and
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