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.
) 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
Coronado Biosciences, Inc.
). Both companies hold a Zacks Rank #1 (Strong Buy).
ACTELION LTD (ALIOF): Get Free Report
CORONADO BIOSCI (CNDO): Free Stock Analysis
IMPAX LABORATRS (IPXL): Free Stock Analysis
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