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Adamis (ADMP) Surges Following Novartis Deal for Symjepi

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Shares of Adamis Pharmaceuticals surged 50% after the company announced that it entered into an exclusive distribution and commercialization agreement for its Symjepi (epinephrine) with Swiss pharma giant Novartis’ (NVS - Free Report) generic arm, Sandoz.

Terms of the Agreement

Per the agreement, Sandoz will own the commercial rights to Symjepi in the United States, in exchange for an upfront fee and potential performance-based milestone payments. Both companies will share the profits equally. We note that Symjepi Injection 0.3 mg was approved by the FDA in 2017 for use in the emergency treatment of acute allergic reactions, including anaphylaxis. Sandoz will also get commercial rights for Symjepi Injection 0.15mg, upon approval, as the product is under FDA review for now. On the other hand, Adamis will retain the right to commercialize both products in territories outside the United States. Sandoz, however, gets the first right of negotiation for such territories.

Adamis also has the option to develop Symject injection platform for additional product candidates, including the naloxone product candidate being developed to treat opioid overdose.

How Will Adamis Gain?

Adamis will get Novartis as a strong commercial partner, given the latter’s dominant position in the pharmaceutical market. Moreover, the financial terms of the agreement are favorable for Adamis, as it will get an upfront fee and milestone payments.

We remind investors that Symjepi competes with Mylan‘s EpiPen, and Adamis had been on the lookout for a commercial partner, for long. Earlier in 2016, Allergan had terminated its license agreement to commercialize the product, which was then not approved by the FDA.

Hence, the agreement with Novartis bodes well for Adamis. The news boosted investors’ sentiment as well. Adamis’ stock gained 9.1% in the year so far, outperforming the industry’s growth of 2.9%.

 

On the other hand, the addition of Symjepi will further expand Sandoz’s existing portfolio, given the market potential of epinephrine.

Zacks Rank

Adamis currently carries a Zacks Rank #4 (Sell).

You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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