Par Pharmaceutical Companies Inc.
(
PRX
) recently announced that it has commenced the shipment of a
generic version of Provigil, approved for improving wakefulness in
patients with excessive sleepiness associated with narcolepsy,
obstructive sleep apnea/hypopnea syndrome and shift work sleep
disorder.
Par Pharma had acquired the US rights to market generic Provigil
from
Teva Pharmaceutical Industries Ltd.
's (
TEVA
) in October 2011, following Teva's acquisition of Cephalon.
Annual US sales of Provigil amounted to $1.1 billion, according
to IMS Health data.
We note that according to the US Food and Drug Administration
(FDA), Teva alone is entitled to 180-day exclusivity of generic
Provigil as it was the first-to-file.
Apart from the US rights to generic Provigil, Par Pharma had
also acquired the abbreviated new drug applications (ANDA) for
generic Actiq and generic Amrix from Teva. These products are
significant additions to Par Pharma's generic product
portfolio/pipeline.
Meanwhile, Par Pharma has been busy acquiring companies and
signing new deals to build its pipeline. In February, the company
completed the acquisition of India-based generic company Edict
Pharmaceuticals. Par Pharma paid $20.5 million at the close of the
transaction along with a debt repayment of $4.4 million.
Edict Pharma, located in Chennai, India, develops and
manufactures solid oral dosage generic pharmaceuticals and
currently has 11 ANDAs filed with the FDA.
Earlier, in November 2011, Par Pharma had acquired Anchen
Pharmaceuticals for $410 million in cash. Anchen Pharma's portfolio
consists of five marketed products, 27 ANDAs filed with the FDA,
five of which are believed to be first-to-file, and about 26
products in development.
We note that these transactions will add to Par Pharma's
portfolio, boosting the company's revenues, which amounted to
$926.1 million in 2011, 8.3% below the year-ago figure of $1.01
billion. Lower sales of the company's generic products primarily
led to the decline. (Read our full coverage on the earnings at:
PRX Outperforms; Reaffirms Guidance
)
We currently have a Neutral recommendation on Par Pharma. The
stock carries a Zacks #3 Rank (Hold rating) in the short run.
PAR PHARMA COS (
PRX
): Free Stock Analysis Report
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TEVA
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