Why Amneal Is Monday’s Big Biopharma Winner

Health and Healthcare

Published: August 20, 2018 10:35 am

Last Updated: January 11, 2020 7:07 pm

Amneal Pharmaceuticals Inc. (NYSE: AMRX) shares hit a post-IPO high in Monday’s session after the company announced a new licensing and supply agreement. The agreement will be effective March 22, 2019. Further terms of the agreement were not disclosed.

Essentially, this is a 10-year license and supply agreement for levothyroxine sodium tablets with Jerome Stevens Pharmaceuticals (JSP). The agreement includes an upfront milestone payment upon commercialization and a profit share on future sales of levothyroxine.

For some quick background: levothyroxine sodium tablets are used in the therapeutic areas of hypothyroidism and pituitary thyroid stimulating hormone suppression. The U.S. brand and generic market for levothyroxine sodium tablets is estimated to be roughly $2.6 billion in annual sales and 122 million annual prescriptions, according to IQVIA, for the 12 months ending June 30, 2018.

Rob Stewart, president and CEO of Amneal, commented:

Levothyroxine is one of the most compelling generic product markets in the United States today. With more than 120 million prescriptions per year, Levothyroxine is the most prescribed drug in the United States, and we see exciting opportunities to grow market share, given the evolving market dynamics in the space and the manufacturing and validation challenges associated with this product. Moreover, this agreement strengthens our long-term relationship with JSP, which has consistently manufactured Levothyroxine to a high-quality specification for more than 25 years.

Shares of Amneal were last seen up about 12% at $24.19, with a consensus analyst price target of $23.07 and a post-IPO range of $13.47 to $24.38.

24/7 Wall St.
Stifel Says Semiconductor Trade Not Over: 4 to Buy Now

In 20 Years, I Haven’t Seen A Cash Back Card This Good

After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.

A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.

Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.