Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Avanir Pharmaceuticals, Inc. (AVNR - Snapshot Report) recently announced an exclusive multi-year agreement with Merck & Co., Inc. (MRK - Analyst Report) for the co-promotion of Merck’s type II diabetes drug, Januvia and the sitagliptin family of products in the U.S.

As per the deal, Avanir is entitled to fixed as well as incentive-based payment.

Avanir will promote the sitagliptin family of products in long-term care institutions from Oct 2013. In all other settings, Merck will promote these products. Merck is also responsible for all other aspects of research, manufacturing and marketing of these products.

Key products in Merck’s diabetes franchise are Januvia and Janumet. Januvia, a DPP-IV (dipeptidyl peptidase) inhibitor for type II diabetes, was approved in Oct 2006. The company combined Januvia and metformin (an oral diabetes drug) into a single pill called Janumet. Januvia revenues increased 1% to $1.1 billion and Janumet revenues grew 16% to $ 474 million in the quarter ended Jun 2013. Combined sales of the two drugs were $5.7 billion in 2012.

Both Avanir and Merck carry a Zacks Rank #3 (Hold). This deal is a major positive for Avanir. The collaboration provides Avanir with funds in the form of fixed as well as incentive payments. This deal brings together Merck’s leadership in diabetes and Avanir’s well established sales force in the institutional setting. This collaboration signifies Merck’s efforts to strengthen its diabetes franchise sales.

Currently, companies like Pharmacyclics, Inc. (PCYC - Analyst Report) and Actelion Ltd. (ALIOF) look well positioned in the pharma space with a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%