Impax's Outlook for 2014 - Analyst Blog


Financial guidelines play an important role in investment decisions as they provide investors with an idea about the company's goals and potential. With fourth quarter results round the corner, quite a few companies have been providing an insight on their financial goals for 2014.

Earlier this week, Impax Laboratories Inc. ( IPXL ) said that it expects gross margins in the low 50% range.

While the company expects to spend $82 million − $88 million on R&D including generic business R&D in the range of $46 million and $49 million and brand business R&D in the range of $36 million to $39 million, SG&A spend is expected in the range of $115 million − $120 million.

The company said that it has 77 opportunities in its generics pipeline representing branded and generic sales worth $26 billion in the U.S. Meanwhile, a major focus area for Impax will be to gain approval for Rytary (symptomatic treatment of Parkinson's disease). The company intends to file for EU approval in the second half of the year.

Impax is also looking to build its pipeline through internal and external business development activities. Target areas include the neurology and psychology space and neurology- and psychology-focused candidates with near-term launch potential. Orphan drugs in the central nervous system market will also be a target area for the company.

Patent litigation expenses are expected in the range of $11 million − $13 million. Meanwhile, capital expenditure is estimated in the range of $40 million − $45 million. A major part of this amount will be spent on facility improvements and the final stage of the expansion of the Taiwan plant.

Impax carries a Zacks Rank #1 (Strong Buy). We expect investor focus to remain on Rytary regulatory updates, the selection of partners for Rytary in ex-U.S. territories and the resolution of the Hayward warning letter.

Some other stocks worth considering include Actelion Ltd. ( ALIOF ) and Coronado Biosciences, Inc. ( CNDO ). Both companies hold a Zacks Rank #1 (Strong Buy).


CORONADO BIOSCI (CNDO): Free Stock Analysis Report

IMPAX LABORATRS (IPXL): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ALIOF , CNDO , IPXL

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