Early Generic Celebrex Could Be Positive for PBMs and Retailers, FBR Capital Says
Tweet
Share
E-mail
Get Alerts PFE Hot Sheet
Price: $26.14 -0.68%
Rating Summary:
13 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 9 | New: 14
Rating Summary:
13 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 9 | New: 14
Join SI Premium – FREE
Yesterday, Pfizer (NYSE: PFE) announced that a District Court invalidated a patent that would have provided Celebrex an additional 18 months of protection. If Pfizer is unsuccessful in getting a court to overturn the decision, this paves the way for certain generic Celebrex makers to bring drugs to the market as soon as May 30, 2014. Given that generic drugs are more profitable than brands for drug distributors, PBMs and retailers, generic Celebrex could drive EPS upside throughout the group, noted FBR Capital analyst Tom Gallucci. Beneficiaries include, CVS Caremark (NYSE: CVS), Express Scrips (NASDAQ: ESRX) and Walgreen's (NYSE: WAG), among others.
IMS estimates that Celebrex generated approximately $2.3 billion in U.S. sales in 2013. Teva (NADAQ: TEVA) , Mylan (NYSE: MYL) and Actavis (NYSE: ACT) already have tentative FDA approvals to market their generic versions of Celebrex, according to FBR's understanding. Given this, Gallucci estimates an early launch could add roughly up to ~1% to CY14 EPS forecasts for the wholesalers. For PBMs and retailers, "roughly speaking, we estimate that the brand-to-generic conversion could yield EPS accretion of a couple of pennies, give or take, for CVS, Express Scripts and Walgreens - depending on pricing, etc."
IMS estimates that Celebrex generated approximately $2.3 billion in U.S. sales in 2013. Teva (NADAQ: TEVA) , Mylan (NYSE: MYL) and Actavis (NYSE: ACT) already have tentative FDA approvals to market their generic versions of Celebrex, according to FBR's understanding. Given this, Gallucci estimates an early launch could add roughly up to ~1% to CY14 EPS forecasts for the wholesalers. For PBMs and retailers, "roughly speaking, we estimate that the brand-to-generic conversion could yield EPS accretion of a couple of pennies, give or take, for CVS, Express Scripts and Walgreens - depending on pricing, etc."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- European Commission Approves Pfizer’s EMBLAVEO® for Patients with Multidrug-Resistant Infections and Limited Treatment Options
- East West Bancorp (EWBC) PT Raised to $90 at BofA Securities
- Pfizer (PFE) Announces EC Approves EMBLAVEO for Patients with Multidrug-Resistant Infections and Limited Treatment Options
Create E-mail Alert Related Categories
Analyst CommentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
