AstraZeneca's Zinforo Gets EC Nod - Analyst Blog
August 30 2012 - 2:30PM
Zacks
AstraZeneca (AZN) recently announced that the
European Commission (EC) has approved Zinforo (ceftaroline fosamil)
for treating adults with complicated skin and soft tissue
infections (cSSTI) or community acquired pneumonia (CAP).
The European approval did not come as a surprise as Zinforo had
earlier received a positive opinion from the Committee for
Medicinal Products for Human Use (CHMP) of the European Medicines
Agency (EMA). Approval was based on encouraging data from four
phase III trials - CANVAS 1 and 2 (cSSTI) and FOCUS 1 and 2
(CAP).
While we are pleased with the European approval of Zinforo, we note
that the market is highly competitive given the presence of players
like Cubist Pharmaceutical’s (CBST) Cubicin and
Pfizer’s (PFE) Tygacil.
We note that in 2009, Forest Laboratories (FRX)
had out-licensed co-exclusive development and exclusive commercial
rights to Zinforo in all territories except the US, Canada and
Japan. In March 2011, Forest Labs launched ceftaroline fosamil
under the trade name Teflaro in the US. The company reported
Teflaro sales of $9.4 million for the three months ending June 30,
2012.
Neutral on AstraZeneca
We are encouraged by AstraZeneca’s focus on high-potential emerging
markets and are pleased with its effort to drive the bottom line
through cost-cutting initiatives and share buybacks.
However, we remain concerned about the generic competition faced by
the company’s key products. In 2011, the company lost revenues
worth almost $2 billion to generic competition. The weak late-stage
pipeline coupled with slow Brilinta uptake also bothers us.
We currently have a Neutral recommendation on AstraZeneca. The
stock carries a Zacks #3 Rank (Hold rating) in the short run.
ASTRAZENECA PLC (AZN): Free Stock Analysis Report
CUBIST PHARM (CBST): Free Stock Analysis Report
FOREST LABS A (FRX): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
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