The share price of
Impax Laboratories, Inc
) has been on a steady rise since the company reported impressive
third quarter results on Nov 4, 2013, aided by positive estimate
Impax recently received further boost when it entered into an
agreement with privately-held Purdue Pharma to settle all of its
pending patent litigation.
The litigation is related to Impax's generic version of the
currently marketed, reformulated OxyContin. The litigation dates
back to Apr 2011 when Purdue Pharma filed suit against Impax
alleging patent infringement based on latter's Abbreviated New
Drug Application (ANDA) relating to OxyContin.
In addition, Purdue Pharma filed a separate lawsuit against
Impax involving the same product and ANDA, asserting infringement
of two newly issued patents in Feb 2013.
As per the settlement agreement, Impax will have the right to
market a specified number of bottles of its generic OxyContin.
This marketing right is contingent upon Impax receiving final
approval from the U.S. Food and Drug Administration (FDA) on its
ANDA for generic OxyContin. However, if Impax's final ANDA does
not get approved, it will have the right to launch a specified
number of bottles of an authorized generic version of OxyContin
beginning Jan1, 2016.
We note that OxyContin is indicated for the management of
moderate-to-severe pain when a continuous, around-the-clock
opioid analgesic is needed for an extended period of time.
As per IMS, sales of OxyContin were approximately $2.6 billion
in the trailing twelve months ended Sep 2013.
We note that Global Pharmaceuticals, the generic unit of
Impax, performed impressively in the third quarter of 2013.
Segmental revenues climbed 15.3% to $115.7 million during the
quarter aided by the sales of new generic products launched this
year. Growth was partially offset by lower sales of Impax's
authorized generic version of
) attention deficit hyperactivity disorder (ADHD) drug, Adderall
Impax currently carries a Zacks Rank #1 (Strong Buy). Other
stocks that look attractive include
). Both carry a Zacks Rank #1.
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