Watson Pharmaceuticals, Inc.
) recently announced that it is seeking FDA approval for its
generic version of Millennium Pharma's Velcade (bortezomib).
Millennium Pharma is a wholly-owned subsidiary of
). The abbreviated new drug application (ANDA) was filed by
Actavis, Inc. Actavis was acquired by Watson Pharma in October
(ALPMY): ETF Research Reports
(TKPYY): ETF Research Reports
VALEANT PHARMA (VRX): Free Stock Analysis
WATSON PHARMA (WPI): Free Stock Analysis
To read this article on Zacks.com click here.
Velcade is approved for the treatment of multiple myeloma as well
as mantle cell lymphoma in patients who have received at least
one prior treatment. As per IMS Health, US sales of Velcade for
the 12 months ending October 31, 2012, were $740 million.
Millennium Pharma filed a patent infringement lawsuit against
Actavis on December 21, 2012. This means that final FDA approval
cannot be granted for up to 30 months from the date on which
Millennium Pharma received notice regarding the ANDA filing or
until final resolution of the matter before the court, whichever
We currently have a Neutral recommendation on Watson Pharma,
which carries a Zacks #3 Rank (Hold). We are positive on the
Actavis acquisition, which will be immediately accretive to
earnings. With the Actavis acquisition, Watson Pharma has become
the third largest generic pharmaceutical company in the world.
The company expects to generate annual cost (SG&A, R&D,
corporate, purchasing and raw material supply) synergy savings of
$300 million within three years.
Watson Pharma also announced its intention to adopt a new global
name Actavis from 2013. The company will start trading under a
new symbol on the New York Stock Exchange in 2013.
Pharma companies that currently carry a Zacks #1 Rank (Strong