Needham & Company on Watson Pharmaceuticals (WPI): Deal With Amgen Couples WPI’s Checkbook With Biotech Icon’s Development Prowess
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Price: $85.73 --0%
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Watson Pharmaceuticals (NYSE: WPI).
Needham analyst says, "WPI has announced a global collaboration with Biotech icon Amgen (Nasdaq: AMGN) (N/R) covering an undisclosed portfolio of oncology monoclonal antibodies (Rituxan, Herceptin, Avastin, Campath, Erbitux, Vectibix, etc.) essentially capitalizing on AMGN’s development and regulatory expertise in exchange for WPI ponying up potentially $400.0MM in shared development costs. While the collaboration will unlikely yield a revenue generating asset until the 2017-18 timeframe, deal is impressive from the WPI perspective given AMGN’s clout in the space in addition to the speedy progress WPI has made in moving from concept to expenditure phase in the build out of its biologics effort which includes the Eden Biodesign platform acquisition and a collaboration with Itero Biopharmaceuticals (N/R) to develop FSH. Amgen will carry the bulk of the initial burden with responsibility for development, manufacturing and commercialization. WPI’s role at the outset appears mainly financial, bankrolling up to $400.0MM in cumulative development costs which are expected to incurred over the next 7-8 years with heavier spend in the 2014-15 period. WPI’s expertise could come into play down the road in areas such as litigation or franchise extension strategies."
For an analyst ratings summary and ratings history on Watson Pharmaceuticals click here. For more ratings news on Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $59.65 yesterday.
Needham analyst says, "WPI has announced a global collaboration with Biotech icon Amgen (Nasdaq: AMGN) (N/R) covering an undisclosed portfolio of oncology monoclonal antibodies (Rituxan, Herceptin, Avastin, Campath, Erbitux, Vectibix, etc.) essentially capitalizing on AMGN’s development and regulatory expertise in exchange for WPI ponying up potentially $400.0MM in shared development costs. While the collaboration will unlikely yield a revenue generating asset until the 2017-18 timeframe, deal is impressive from the WPI perspective given AMGN’s clout in the space in addition to the speedy progress WPI has made in moving from concept to expenditure phase in the build out of its biologics effort which includes the Eden Biodesign platform acquisition and a collaboration with Itero Biopharmaceuticals (N/R) to develop FSH. Amgen will carry the bulk of the initial burden with responsibility for development, manufacturing and commercialization. WPI’s role at the outset appears mainly financial, bankrolling up to $400.0MM in cumulative development costs which are expected to incurred over the next 7-8 years with heavier spend in the 2014-15 period. WPI’s expertise could come into play down the road in areas such as litigation or franchise extension strategies."
For an analyst ratings summary and ratings history on Watson Pharmaceuticals click here. For more ratings news on Watson Pharmaceuticals click here.
Shares of Watson Pharmaceuticals closed at $59.65 yesterday.
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