) announced that its co-promotion agreement with
) for SUMAVEL DosePro, approved for the treatment of adults
suffering from acute migraine and cluster headaches, will be
terminated. Mallinckrodt will stop promoting the drug from Jan
ACTAVIS PLC (ACT): Free Stock Analysis Report
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MALLINCKRODT PL (MNK): Free Stock Analysis
ZOGENIX INC (ZGNX): Free Stock Analysis
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The agreement between Mallinckrodt and Zogenix dates back to Jun
7, 2012. Per the terms of the agreement, Mallinckrodt's sales
force was selling the drug to its prescriber base.
Mallinckrodt received a percentage of net sales from
prescriptions generated by it. The agreement was initially slated
to end on Jun 30 this year.
The agreement was terminated ahead of Zogenix's sales force
expansion plan, which is due to take effect from February this
year. Zogenix will be fully responsible for the commercialization
of the drug and will start promoting the drug to neurologists,
headache specialists and pain specialists from Feb 1, 2014.
The amendment in the co-promotion agreement has been made in such
a way that neither of the companies will be liable to pay a
penalty for the premature termination.
Meanwhile, Mallinckrodt intends to focus on promoting its
products in the pain market. 2014 will be a transition year for
the company, with lead branded pain product Exalgo losing
exclusivity. The company also expects additional competition for
its generic version of Concerta (methylphenidate ER).
Mallinckrodt carries a Zacks Rank #2 (Buy). Other players which
look attractive at current levels include
Impax Laboratories Inc.
). While Impax is a Zacks Rank #1 (Strong Buy) stock, Actavis is
a Zacks Rank #2 (Buy) stocks.