Cadence Pharmaceuticals, Inc
) recently announced that its Ofirmev (acetaminophen) injection
has been made available on the Veterans Affairs National
Formulary (VANF) by the Department of Veterans Affairs (VA).
Cadence Pharma believes that the availability of Ofirmev on
the VANF list confirms VA's recognition of the clinical value of
The VANF refers to a product list (drugs and supplies) which
is usually covered under VA pharmacy benefits. The VANF
management process aims to provide high quality pharmaceutical
The management process also strives to ensure the portability
and standardization of the pharmacy benefit to all eligible
veterans accepted by the VA for care.
We note that Ofirmev is Cadence Pharma's proprietary
intravenous formulation of acetaminophen. It is indicated for the
management of pain with adjunctive opioid analgesics as well as
for the reduction of fever.
The drug was approved by the US Food and Drug Administration
(FDA) in Nov 2010 and subsequently launched in the US in Jan
2011. Sales of Ofirmev nearly tripled from the year-ago quarter
to $17.1 million in the fourth quarter of 2012.
As of Dec 31, 2012, Cadence Pharma had over 3,750 unique
customer accounts, up 66% from the year-ago quarter.
Cadence has sold more than $6 million vials of Ofirmev from
Jan 2011 to Jan 2012.
Cadence Pharma acquired the exclusive rights to Ofirmev in the
US and Canada from
) in 2006. The drug is marketed by Bristol-Myers as Perfalgan in
Europe and other parts of the world.
Meanwhile, Cadence Pharma recently amended its supply
agreement with Lawrence Laboratories, a member of the
Bristol-Myers Squibb group of companies, which supplies Ofirmev
to Cadence. The supply agreement has now been extended through
In order to improve the sales of the drug further, Cadence is
taking steps to package and thereby market the product better.
Cadence entered into an agreement with Laboratorios Grifols in
early Mar 2013 to supply Ofirmev in inflexible plastic
Cadence Pharma expects net revenue for Ofirmev to be in the
range of $94 million to $100 million in 2013, up from $50.1
million in 2012.
AVANIR PHARM (AVNR): Free Stock Analysis
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Cadence Pharma holds a Zacks Rank #3 (Hold). Other pharma stocks,
which are well placed, include
). Both stocks carry a Zacks Rank #2 (Buy).