Par Pharma Forecasts Robust Growth

January 12, 2012  Par Pharmaceuticals Inc. (PRX) held its analyst day recently, where it highlighted its performance in 2011 and also provided a peek into expectations for 2012 and beyond.

 2011: The Year That Was…Par Pharma develops, manufactures, and markets generic drugs and innovative branded pharmaceuticals for specialty market, through its two division – Strativa Pharmaceuticals (branded segment) and Par Pharmaceuticals (generic segment). Strativa currently markets Megace ES (anorexia, cachexia, or any other unexplained weight loss) and Nascobal Nasal Spray (vitamin B12 supplement). During 2011, the company experienced consistent demand for Megace ES, with average prescriptions filled each month coming in at 15,000. The company anticipates Nascobal peak sales to reach $40 to $50 million in future. We would like to remind investors that Par Pharma acquired Anchen Pharmaceuticals in November 2011, and entered into an agreement to acquire India-based generic company Edict Pharmaceuticals in May 2011. Additionally, In October 2011, Par acquired rights to three products from Teva Pharmaceutical Industries Ltd. (TEVA), following the latter's acquisition of Cephalon. We note that following the acquisitions of Anchen Pharma and Edict Pharma, Par Pharma will have 72 abbreviated new drug applications (ANDA) filed for approval with the US Food and Drug Administration (FDA). Of these 72 ANDAs, 4 are potential first-in-market opportunities, with 19 being first-to-file opportunities. We note that these 72 ANDAs represent over $20 billion of branded sales. Moreover, all three companies together currently have 92 products under development, most of which are, or, will be paragraph IV filings. Of these, Par Pharma has 39 products in its pipeline, Anchen Pharma has 35 and Edict Pharma has the remaining 18. At Par Pharma's last analyst meeting, it had said that on an average it expects to file five to seven ANDAs and launch about two to three products annually. The company exceeded this forecast and launched eight new products in 2011.