Watson Launches Authorized Generic - Analyst Blog
May 18 2011 - 1:29PM
Zacks
Watson Pharmaceuticals Inc. (WPI) recently
announced the US launch of an authorized generic version of
Cephalon Inc.’s (CEPH) Amrix (15 mg and 30 mg).
The drug is currently marketed to help control muscle spasm
associated with acute, painful musculoskeletal conditions.
Watson Pharma has an agreement with Anesta (a subsidiary of
Cephalon), under which Anesta manufactures and supplies all dosage
strengths of the authorized generic of Amrix to Watson Pharma, who
in turn markets the product in the US. For the deal, Watson Pharma
will receive sales-based payments.
Amrix sales amounted to $109.2 million in 2010.
We note that last week Mylan Inc. (MYL)
launched a generic version of Amrix in 15 mg and 30 mg dosage
strengths. Mylan has 180 day marketing exclusivity for the generic
drug since it was the first company to file an Abbreviated New Drug
Application (ANDA) for the generic of Amrix.
Recently, Watson Pharma also announced the US launch of an
authorized generic version of Johnson &
Johnson’s (JNJ) Concerta. Johnson & Johnson markets
Concerta as a treatment for attention deficit hyperactivity
disorder (ADHD) in children aged 6 to 17 and adults aged 18 to
65.
The company has an agreement with Johnson & Johnson, under
which the latter manufactures and supplies all dosage strengths of
the authorized generic product to Watson Pharma, who distributes
the product in the US.
As per the terms of the agreement, which runs through 2014,
Johnson & Johnson is set to receive a share of the net sales of
the product from Watson Pharma.
The agreement allows Watson Pharma to file an ANDA with the US
Food and Drug Administration (FDA) in order to launch its own
generic version of Concerta, post the conclusion of the current
agreement.
Concerta sales came in at $1.32 billion in 2010.
Neutral on Watson Pharma
We currently have a Neutral recommendation on Watson Pharma. We
believe that the company’s cost saving initiative and new product
launches, both branded and generic, will help drive long-term
growth.
CEPHALON INC (CEPH): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
WATSON PHARMA (WPI): Free Stock Analysis Report
Zacks Investment Research
Cephalon (NASDAQ:CEPH)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cephalon (NASDAQ:CEPH)
Historical Stock Chart
From Jul 2023 to Jul 2024