On Sep 26, we issued an updated research report on Impax Laboratories, Inc. (IPXL - Free Report) . Impaxis a biopharmaceutical company focused on the development of obesity treatments and is based in Hayward, CA.
Impax’s anaphylaxis treatment, epinephrine auto-injector has shown notable growth in sales along with its opioid analgesic, oxymorphone ER, boosting its growth prospects. We note that Impax had acquired certain generic products from Teva Pharmaceuticals Industries Ltd. (TEVA - Free Report) last year. Meanwhile, the launch of generic version of Merck & Co., Inc’s (MRK - Free Report) cardiovascular drug, Vytorin, in April 2017 is expected to further boost Impax’s revenues. The drug registered sales of $423 million in the first six months of 2017. The approval of the generic version of Johnson & Johnson’s (JNJ - Free Report) Concerta in July should also help in sales growth.
At the end of June 2017, the company had 19 abbreviated new drug applications (ANDA) pending FDA approval. With these ANDAs and its generics pipeline, Impax will likely be able to take advantage of the upcoming patent expirations in the pharma industry.
In May 2017, in its effort to save costs Impax initiated several processes to improve efficiencies and margins, and focus on growth opportunities. The company has started consolidating and stopping its manufacturing and packing facilities. The company is also modifying its generic portfolio so as to eliminate low-value products and streamline operations.
The company expects the above actions to save annualized costs to the tune of $130 million by the end of 2019.
However, the generics industry is facing pricing pressure since 2016 which has negatively impacted the revenues of the companies marketing generic drugs. Impax has lowered earnings guidance for 2017 than 2016 in anticipation of dampened revenues.
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