The entry of generic competition for key products always
delivers a major blow to the branded company's financials. Usually,
the innovator company explores different avenues to reduce the
impact of genericization of key products. These include the launch
of authorized generic versions as well as the signing of deals
targeted to boost the pipeline or product portfolio. Many companies
often work on the extension of the product's life-cycle which could
involve the development of an improved version of the product so
that patients can be switched to the same before generics enter the
Forest Laboratories, Inc.
), which is expected to face generic competition for its
Alzheimer's drug, Namenda IR (memantine HCl), from early 2015, is
looking at ways to stem the impact of generic competition.
Earlier this week, Forest Labs said that it intends to continue
marketing Namenda IR till the fall of 2014. The company, which is
switching patients from Namenda IR to Namenda XR (a higher dose,
once-daily extended-release formulation of Namenda IR), has
postponed the final phase of switching to late 2014.
We remind investors that in Feb 2014 Forest Labs had announced its
intention to discontinue the production and sale of Namenda IR from
Forest Labs is exploring all avenues to extend the Namenda
franchise's life-cycle. Forest Labs is working with
) on the development of a fixed dosed combination of Namenda XR and
Aricept for the once-daily treatment of moderate to severe dementia
of the Alzheimer's type. The fixed dose combination is currently
under review in the U.S. The plan is to launch this combination
(provided FDA approval is gained) before the entry of generic
versions of Namenda IR in 2015.
Additionally, data from a pediatric program on Namenda IR is under
FDA review. Feedback should be out in the third quarter of calendar
year 2014. Pediatric approval will extend Namenda IR's exclusivity
to Oct 11, 2015.
We note that
) will acquire Forest Labs in a cash and equity transaction worth
about $25 billion. The deal is expected to close in the second half
Forest Labs carries a Zacks Rank #3 (Hold). A better-ranked stock
in the pharma sector is
ANI Pharmaceuticals, Inc.
), carrying a Zacks Rank #1 (Strong Buy).
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