Watson's Generic Product Approved - Analyst Blog
January 07 2013 - 6:00AM
Zacks
Watson Pharmaceuticals,
Inc. (WPI) 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 pending.
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.
Our
Recommendation
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 (VRX) and
Ironwood Pharmaceuticals (IRWD) carry a Zacks #1
Rank (Strong Buy).
IRONWOOD PHARMA (IRWD): Free Stock Analysis Report
VALEANT PHARMA (VRX): Free Stock Analysis Report
WATSON PHARMA (WPI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Watson (NYSE:WPI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Watson (NYSE:WPI)
Historical Stock Chart
From Sep 2023 to Sep 2024