Valeant Pharmaceuticals International, Inc.
) recently stated that it anticipates its 2013 guidance to
decline following the approval of a generic version of its
) recently received U.S Food and Drug Administration (FDA)
approval to sell the first generic version of Zovirax
Mylan launched the drug after receiving final approval from
the FDA regarding the Abbreviated New Drug Application (ANDA) for
its generic version of the drug.
In response, Valeant will also launch an authorized generic
version of Zovirax. We remind investors that Zovirax accounted
for 7% of Valeant's total revenue in 2012.
Valeant estimates the launch of Mylan's generic version to
adversely impact its bottom line on a cash basis by 30 to 40
cents in 2013. Concurrent with the fourth quarter results in Feb
2013, Valeant reaffirmed its guidance provided in January.
Earnings per share were then projected around $5.45 -
Valeant intends to provide an updated guidance in May along
with its first quarter 2013 results. The current Zacks Consensus
Estimate stands at $5.69 and we estimate downward revisions in
the same going forward.
We note that Zovirax is indicated for the management of
initial genital herpes and limited non-life threatening
mucocutaneous herpes simplex infections in immuno-compromised
Valeant has been marketing Zovirax in the US since Jan 2002
under a 20-year exclusive distribution agreement with
). This agreement was terminated in 2011. Subsequently, Valeant
entered into a new agreement and acquired the marketing rights to
non-ophthalmic topical formulations of Zovirax in the US and
Canada from GlaxoSmithKline in the first quarter of 2011.
Valeant Pharmaceuticals currently carries a Zacks Rank #3
(Hold). Right now,
Furiex Pharmaceuticals Ltd.
) looks better positioned with a Zacks Rank #2 (Buy).
FURIEX PHARMACT (FURX): Free Stock Analysis
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VALEANT PHARMA (VRX): Free Stock Analysis
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