Needham & Company on Impax Labs (IPXL): Not a Strategic Game-Change but Zomig Offsets SG&A Ramp and Provides Short-Term EPS Boost
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Price: $18.30 --0%
Rating Summary:
8 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
8 Buy, 15 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Needham & Company maintains a 'Hold' on Impax Laboratories (NASDAQ: IPXL).
Analyst, Elliot Wilbur, said, "At last, IPXL pulled the trigger on a branded product acquisition, paying $130MM for the U.S. rights to AstraZeneca’s (NYSE: AZN) Zomig (zolmitriptan) franchise, a basket of three product formulations that generated just ~$160MM in TTM sales. Essentially, the deal boils down to the acquisition of Zomig nasal spray (~$16MM in sales), a long-tailed asset with growth potential, and significant near-term earnings power and the rapid return of purchase price via the tablet and orally-disintegrating forms of Zomig, both of which lose patent protection in May 2013. While not transformational in the sense of elevating IPXL’s branded platform to the forefront of share price valuation, the deal as it adds a quality second-position asset behind key pipeline drug, IPX-066 (4Q12 PDUFA), and provides ample EPS camouflage to cover significant near-term SG&A spend."
For an analyst ratings summary and ratings history on Impax Laboratories click here. For more ratings news on Impax Laboratories click here.
Shares of Impax Laboratories closed at $20.60 yesterday.
Analyst, Elliot Wilbur, said, "At last, IPXL pulled the trigger on a branded product acquisition, paying $130MM for the U.S. rights to AstraZeneca’s (NYSE: AZN) Zomig (zolmitriptan) franchise, a basket of three product formulations that generated just ~$160MM in TTM sales. Essentially, the deal boils down to the acquisition of Zomig nasal spray (~$16MM in sales), a long-tailed asset with growth potential, and significant near-term earnings power and the rapid return of purchase price via the tablet and orally-disintegrating forms of Zomig, both of which lose patent protection in May 2013. While not transformational in the sense of elevating IPXL’s branded platform to the forefront of share price valuation, the deal as it adds a quality second-position asset behind key pipeline drug, IPX-066 (4Q12 PDUFA), and provides ample EPS camouflage to cover significant near-term SG&A spend."
For an analyst ratings summary and ratings history on Impax Laboratories click here. For more ratings news on Impax Laboratories click here.
Shares of Impax Laboratories closed at $20.60 yesterday.
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