Watson Pharmaceuticals, Inc.
) recently announced that it gained US Food and Drug
Administration (FDA) approval for its generic version of Ferring
Pharmaceuticals' Lysteda (tranexamic acid) tablet. The company
intends to launch the product soon.
Lysteda tablet is approved for the treatment of cyclic heavy
menstrual bleeding. According to IMS Health, Lysteda generated US
revenues of approximately $25 million for the 12 months ending
November 30, 2012.
Ferring has filed patent infringement lawsuits against Watson
Pharma regarding Lysteda - these litigations are still
FDA approval for Lysteda comes a few days after Watson Pharma
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 Takeda Pharma (TKPYY). The
abbreviated new drug application (ANDA) was filed by Actavis,
Inc. Actavis was acquired by Watson Pharma in October 2012.
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.
Currently, pharma companies like
Valeant Pharmaceuticals International
) carry a Zacks #1 Rank (Strong Buy).
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