Back to top

Analyst Blog

Warner Chilcott plc recently received encouraging news from the US Food and Drug Administration (FDA) when the regulatory agency approved the company’s acne drug Doryx at 200 mg strength (delayed release tablets). The company intends to launch the 200 mg version of the drug in Jul 2013.

We are positive on the approval of Doryx (200 mg) as it has extended the life cycle of the drug at Warner Chilcott, following the genericization of the 150 mg dosage of Doryx last year. We note that Doryx, the sole dermatological offering at Warner Chilcott, has been facing declining sales following its genericization.

On Apr 30, 2012, a US district court issued a verdict regarding Mylan (MYL - Analyst Report) and Impax Laboratories’ (IPXL - Snapshot Report) applications to the FDA to sell their generic versions of 150 mg of Doryx. The court ruled the generic versions of neither of the companies infringed the patent of Doryx. Following the verdict, Mylan entered the US market with its generic version of Doryx 150 mg in May 2012.

Doryx sales declined 58.7% to $19 million in the final quarter of 2012 due to competition from generics. Sales in 2012 declined 46.8% to $92 million. The approval of the 200 mg dosage of the drug should go a long way in arresting the declining trend.

We note that in Feb 2013, Warner Chilcott gained another FDA approval when the US regulatory body cleared the company’s ulcerative colitis drug Delzicol (mesalamine).

Warner Chilcott currently carries a Zacks Rank #3 (Hold). QLT Inc. (QLTI - Analyst Report) is a favorably placed company, in the pharma space, carrying 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

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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%