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June 9, 2010
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Recently, Endo Pharmaceuticals (ENDP) and Penwest Pharmaceuticals (PPCO) settled their litigation with Sandoz, the generic arm of Novartis (NVS). The settlement is for the generic version of Opana extended release (ER) tablets. According to the settlement agreement, Sandoz will be able to sell the generic version of the drug from Sep 15, 2012.
Opana ER, jointly developed by Endo and Penwest, is a pain medicine used to treat moderate-to-severe pain in patients requiring continuous, round-the-clock opioid treatment for an extended period of time.
Sandoz and Penwest also settled their litigation with Impax Laboratories (IPXL) for the generic version of Opana ER tablets. Following the settlement, Impax will be able to sell the generic version of the drug from Jan 1, 2013. Moreover, Impax will have 180-days of exclusivity for six dosage strengths – 5, 10, 20, 30 and 40 mg.
The drug is available in the immediate release version as well. Subsequent to the launch of Opana ER and Opana during the second half of 2006, both drugs witnessed steady prescription growth trends. Total sales of the Opana franchise in 2009 were $230.6 million, accounting for 16% of 2009 total revenues.
Endo and Penwest also amended their existing strategic agreement. The royalty rate on net sales of Opana ER has been capped at 22% for the period of Apr 1, 2010 till Dec 31, 2012 and 20% during 2013.
Endo Pharma’s other products include Lidoderm, Percocet, Voltaren Gel, Frova and Sanctura among others. With $763.7 million in net sales in 2009, Lidoderm accounted for 52% of total net revenues. In order to diversify its operations in May 2010, Endo Pharma decided to acquire HealthTronics, Inc. (HTRN), a leading provider of urological products and services in the US. The acquisition will expand Endo's product offerings to urologists with the addition of lithotripsy, benign prostate hyperplasia (BPH) and prostate cancer therapies.
Read the full analyst report on "ENDP"
Read the full analyst report on "PPCO"
Read the full analyst report on "NVS"
Read the full analyst report on "IPXL"
Read the full analyst report on "HTRN"
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