Global Pharmaceuticals, the generic division of
Impax Laboratories, Inc.
), a specialty pharmaceutical company, recently started shipping
its generic version of
Endo Health Solutions'
) Opana ER (oxymorphone hydrochloride).
Opana ER is approved for relief from moderate to severe acute
pain in patients who are in need of continuous, opioid treatment
for an extended time period.
Back in June 2010, Impax entered into a settlement agreement
with Endo regarding its generic version of Opana ER. As per the
terms of the deal, Endo granted Impax the license to sell generic
version of Opana ER from January 1, 2013.
We note that apart from Impax, the patent on Opana ER has been
challenged by many companies, namely Sandoz, the generic division
), Actavis, Roxane Laboratories and Ranbaxy. The company has
settled all disputes apart from the one associated with Ranbaxy,
which Endo has decided not to challenge. Consequently, Ranbaxy
can sell the generic versions of Opana ER from September 9,
Per the settlements with all other challengers, they have
agreed not to challenge patents relating to Opana ER. Actavis
launched the generic version of non-tamper resistant formulation
of Opana ER (7.5 and 15 mg dosages) on July 15, 2011. Sandoz,
Teva, Watson, Roxane and Actavis can sell all doses of the
generic version of non-tamper resistant Opana ER from July 1,
2013. Ranbaxy is expected to launch its generic version on
September 9, 2013.
We currently have a Neutral recommendation on Impax. The stock
carries a Zacks #3 Rank (Hold) in short run.
Currently, pharma stocks which look more attractive are
Valeant Pharmaceuticals International, Inc.
Ironwood Pharmaceuticals, Inc.
). Both carry a Zacks #1 Rank (Strong Buy).
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