Needham & Company Maintains a 'Hold' on Watson Pharmaceuticals (WPI); FDA Approves Amphastar’s Long Forgotten ANDA for Generic Lovenox
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Price: $85.73 --0%
Rating Summary:
14 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
14 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade WPI Now!
Needham & Company maintains a 'Hold' on Watson Pharmaceuticals (NYSE: WPI).
Needham analyst says, " Eight years and mountains of litigation later, FDA has finally approved Amphastar’s ANDA for generic enoxaparin, a $2.0B blood thinner marketed by Sanofi (NYSE: SNY) (Not/Rated) as Lovenox. In August 2005, Andrx (now WPI) partnered with Amphastar (Not/Rated) to distribute generic Lovenox in the retail channel, then pegged at a third of total sales, for approximately 50% share of profits. The Lovenox saga is a book in itself though we believe it accurate to say that after 8 years, the market had largely given up on Amphastar and few had touted a potential approval as a nearterm upside catalyst for WPI."
"We have not yet spoken with management of either WPI or Amphastar yet to confirm details of launch timing or supply capabilities and our understanding is that there may have been some modification to economics of the original Amphastar/Andrx deal. Nevertheless, given low expectations of an imminent approval and nearly $1.0B in generic sales up for grabs, clearly generic Lovenox represents a nice incremental upside catalyst for WPI numbers."
For more ratings news on Watson Pharmaceuticals click here and for the rating history of Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $69.36 yesterday, with a 52 week range of $42.17-$71.50.
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Needham analyst says, " Eight years and mountains of litigation later, FDA has finally approved Amphastar’s ANDA for generic enoxaparin, a $2.0B blood thinner marketed by Sanofi (NYSE: SNY) (Not/Rated) as Lovenox. In August 2005, Andrx (now WPI) partnered with Amphastar (Not/Rated) to distribute generic Lovenox in the retail channel, then pegged at a third of total sales, for approximately 50% share of profits. The Lovenox saga is a book in itself though we believe it accurate to say that after 8 years, the market had largely given up on Amphastar and few had touted a potential approval as a nearterm upside catalyst for WPI."
"We have not yet spoken with management of either WPI or Amphastar yet to confirm details of launch timing or supply capabilities and our understanding is that there may have been some modification to economics of the original Amphastar/Andrx deal. Nevertheless, given low expectations of an imminent approval and nearly $1.0B in generic sales up for grabs, clearly generic Lovenox represents a nice incremental upside catalyst for WPI numbers."
For more ratings news on Watson Pharmaceuticals click here and for the rating history of Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $69.36 yesterday, with a 52 week range of $42.17-$71.50.
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