ANI Pharmaceuticals (ANIP)

[silvr_surfr]

Odd, Amerigen sells all of their commercial products to us, but there is no press release from them. There must not be any other tangible assets to be acquired and they will be closing. Here are some of my initial observations:

1) Two of the commercial products overlap with our portfolio. Fenofibrate is one of them and it was called out as having weakness in the last quarterly report (perhaps from Amerigen's product).

2) In the "target rich" environment, I like the idea of acquiring a basket of things from one company versus one or a few from different ones since it should be more cost effective and we probably got the bundle deal.

3) The drug indications seem to be on strategy (e.g. oncology). I am now appreciating the importance of this from a distribution standpoint as we can now get a larger share of drugs within these segments with our current customers.

4) Penicilamine is an interesting one and is the only generic. Situation is very similar to Acthar Gel where there is an even smaller patient population and the price tag is exorbitant for the branded one.

5) Bexarotene was reported at one time to be a possible treatment for alzheimer's. It sounds like if there is any benefit it is confined to a subset of the population. Probably nothing will come from it.

6) Amerigen's parent appears to be based in China. We now will have an inroad to this market to sell Cortrophin. This might have some legs.