how MRX has protected the Solodyn franchise from genericization
It's not that MDs are totally clueless, MRX successfully converted most prescriptions to the newer 5 protected doses with patients co-pay cards, that bring the non-legacy doses from tier 3 to 1.
I never thought this U.S. patent No. 5,908,838, which expires in 2018, and relates to the use of the Solodyn unique dissolution rate is very strong as it was rejected and then reexamined but I guess it is very hard to circumvent the claims and get a bioequivalent drug.
›Medicis Shares Surge 24% on Drug Settlement With Teva Pharmaceuticals
By Meredith Lepore Monday February 28, 2011, 12:34 pm EST
Medicis Pharmaceutical Corp., a dermatological products provider, is up around 24% today on news that it entered a settlement which will enable Teva Pharmaceuticals to produce and sell generic versions of its flagship drug, Solodyn.
Investors made a major turnaround on the heavily shorted stock after the deal was announced late Friday night.
Today RBS, JPMorgan and Piper Jaffray raised their price targets and ratings on the stock.
Investors were pessimistic about its fourth quarter earnings which came out Friday as well. Medicis reported revenues in-line with analyst expectations but the Teva deal is what is sending the stock flying.
• A JPMorgan analyst wrote he sees an "increasingly favorable risk/reward for Medicis shares with further clarity on the longer term protection of the Solodyn franchise and with potential for further expansion.
• Teva will have to pay royalties to Medicis to produce 65mg and 115mg strength versions of Solodyn. An RBS analyst estimates that these Teva versions make up 73% of Solodyn sales.[This sounds a little high; what we know is that the five non-legacy doses (55, 65, 80, 105, and 115mg) are getting about 90% of the current scripts: #msg-60365945, #msg-60357229]. Solodyn and the company's other main acne product made $118.9 million in sales in the fourth quarter.[MRX does not break out sales of Solodyn per se, but the other acne products are relatively small.]
• RBS does not think there will be research & development blow-up which some bearish investors are anticipating.
• A Phase III program, expected to total $25 million, will be spread over an 18-month period and will not impact 2011 R&D by more than $8 million, wrote the RBS analyst in a research note. [I’m not sure what this refers to.]‹
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