Shire and arGEN-X Ink Deal - Analyst Blog
March 02 2012 - 11:05AM
Zacks
Shire (SHPGY) recently entered into an
agreement with arGEN-X, a Netherlands-based privately-held
biopharmaceutical company, to create novel treatments for rare
genetic diseases.
As per the terms of the deal, Shire retains an option to license
the candidates for exclusive development (preclinical and clinical)
and commercialization worldwide. In exchange of this option,
arGEN-X will be eligible to receive an upfront technology access
fee, research funding, preclinical success payments, milestones and
royalties from Shire. Financial terms of the agreement were not
made public.
This deal is in line with Shire’s strategy of targeting
specialist markets with strong patent protection and global
rights.
Generic Threats
Shire is facing generic threats for several of its key marketed
products. The company is already facing generic competition for
Adderall XR, one of its top revenue-generating products.
Teva Pharmaceutical Industries, Ltd. (TEVA) and
Impax Laboratories, Inc. (IPXL) had launched
generic versions of Adderall XR in April 2009 and October 2009,
respectively.
Vyvanse, currently the top revenue grosser at Shire, is also
facing patent challenges. Six companies, including Sandoz, Inc.,
Amneal Pharmaceuticals LLC, Watson Laboratories
(WPI), Roxane Laboratories, Inc., Mylan Pharmaceuticals,
Inc. (MYL) and Actavis Elizabeth LLC and Actavis Inc.
(both together) have filed Abbreviated New Drug Applications (ANDA)
for their generic versions of Vyvanse. Shire has filed patent
infringement lawsuits against all these companies.
Shire is currently fighting patent infringement lawsuits for
several of its other products such as Intuniv, Fosrenol and
Lialda.
Our Recommendation
We currently have a Neutral recommendation on Shire. The stock
carries a Zacks #2 Rank (Buy rating) in the short run.
Shire’s recent collaborations and acquisitions (including
Movetis and Advanced BioHealing Inc.) have added immense potential
to its pipeline. With several of its products already facing or
likely to face generic competition, the company’s pipeline needs to
deliver.
IMPAX LABORATRS (IPXL): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
SHIRE PLC-ADR (SHPGY): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
WATSON PHARMA (WPI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Impax Laboratories, Inc. (delisted) (NASDAQ:IPXL)
Historical Stock Chart
From May 2024 to Jun 2024
Impax Laboratories, Inc. (delisted) (NASDAQ:IPXL)
Historical Stock Chart
From Jun 2023 to Jun 2024