Medicines Co. Settles with APP - Analyst Blog
24 Janeiro 2012 - 4:16PM
Zacks
The Medicines Company (MDCO) recently entered
into an agreement with APP Pharmaceuticals regarding generic
versions of The Medicines Company’s lead product, Angiomax.
Angiomax (bivalirudin), which was acquired from Biogen
Idec, Inc. (BIIB) in 1996, is used as an anticoagulant in
patients undergoing coronary angioplasty. Angiomax is the company’s
lead product, accounting for 99.8% of total revenues in 2010.
APP admitted that the two patents challenged by it are valid and
enforceable and would be infringed by its generic version. The
patents, which were the focus of the patent infringement lawsuit,
are slated to expire on July 27, 2028. APP also agreed to dismiss
its appeal of a court decision to treat the patent extension
application for Angiomax as having been filed on a timely
basis.
Background on the ANDAs
The Medicines Company received Para IV notices about APP’s ANDAs
in September 2009 and April 2010. The company responded by filing
patent infringement lawsuits.
Details of the Settlement Agreement
Per the terms of the settlement agreement, The Medicines Company
granted a license to APP and its affiliate under which they can
launch a generic version of Angiomax in the US on May 1, 2019. The
generic could be launched earlier under certain specific
circumstances and could include an authorized generic version which
would be supplied by The Medicines Company.
The companies also announced a fill/finish manufacturing
agreement under which APP will manufacture and supply Angiomax
finished product to The Medicines Company. This agreement will
provide The Medicines Company with an additional source of Angiomax
finished product – the company recently lost a fill and finish
manufacturer.
A third part of the deal related to a license and supply
agreement under which APP will supply The Medicines Company with
acute care generic products (therapeutic areas including treatment
of acute cardiovascular, neurological and infectious diseases in
hospital).
Our Take
The settlement agreement with APP does not come as a major
surprise. Earlier, The Medicines Company had entered into a similar
deal with Teva (TEVA) to delay the entry of
Angiomax generics. With Angiomax accounting for a major part of the
company’s revenue, a delay in the entry of generic versions of the
product is a huge positive.
Although The Medicines Company is still facing patent challenges
for Angiomax from other generic companies like
Hospira (HSP), Mylan (MYL), Sun
Pharma and Dr. Reddy's Laboratories (RDY), we
believe the company will enter into settlement agreements with
these companies as well to delay the entry of generics.
We currently have a Neutral recommendation on The Medicines
Company, which carries a Zacks #3 Rank (short-term Hold
rating).
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
HOSPIRA INC (HSP): Free Stock Analysis Report
MEDICINES CO (MDCO): Free Stock Analysis Report
MYLAN INC (MYL): Free Stock Analysis Report
DOCTOR REDDYS (RDY): Free Stock Analysis Report
TEVA PHARM ADR (TEVA): Free Stock Analysis Report
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