Actavis Adderall XR Approval Positive for Watson Pharm (WPI), Negative for Impax Lab (IPXL)

June 25, 2012 8:34 AM EDT
Get Alerts SHPGY Hot Sheet
Price: $85.67 -0.2%

Rating Summary:
    9 Buy, 5 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 10
Trade SHPGY Now!
Join SI Premium – FREE
Analysts at Goldman Sachs note that news over the weekend from Shire (Nasdaq: SHPGY) that the FDA had responded to its citizen petition regarding Adderall XR generic approvability, and approved the Actavis ANDA, is positive for Watson Pharmaceuticals, Inc. (NYSE: WPI) and negative for Impax Laboratories Inc. (Nasdaq: IPXL).

"We understand that Actavis has launched, adding a full generic competitor to a market that has been divided between the brand and two supply-constrained authorized generics (IPXL and TEVA)," the analyst said.

The firm currently assumes Actavis initially captures 50% share of the market with the remaining 50% divided evenly between Shire brand and the two authorized generics. Goldman doesn't expect new entrants near term, but they will be likely by the 2nd-half of 2013.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments

Related Entities

Goldman Sachs

Add Your Comment