RANBAXY LABS BUYOUT OF PRX

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Anonymous said:
�� Robust pipeline lessens need for external partners
PRX announced that it is buying Anchen, a private, Irvine, CA-based generic
pharma company for $410mn (<3x sales, ~11x EBITDA). We are not changing
our model at this time. But, on a preliminary basis, we believe this transaction
appears to make strategic sense as it adds a relatively robust pipeline w/o PRX
having to rely on external partners, augments capabilities in niche controlled
release generics, and adds immediate sales/profits on closing. We continue to
believe the risk/reward on PRX shares remains favorable; reiterate Buy.
Profitable ops with ~44% gross, 35-40% EBITDA margins
According to PRX, Anchen could generate about $125mn in 2011 sales. Anchen
currently sells 5 products (loss of exclusivity on generic Ambien CR will lower
sales going forward). PRX cited gross margins of 44% (net of amortization) and
EBITDA margins of 35-40%, with annual R&D spend of $25mn and SG&A of less
than $15mn for Anchen. Anchen’s gross margins could go up as the contribution
from partnered products reduces over time. Post-closing (may occur by the end of
2011), PRX could spend $65-70mn in R&D/yr (PRX, Edict, Anchen). For planning
purposes, PRX models an interest rate in the range of 5% on its $350mn dealrelated
term loan (could be conservative; loan is LIBOR-based). On closing, PRX
believes it could have cash on hand of $100-200mn (depending on timing of AWP
settlement payments, etc.). PRX expects to provide more details and potentially
update its 3-year EPS outlook in early 2012.
Anchen’s pipeline has 27 ANDAs w/ five FTF opportunities
Anchen currently has 27 ANDAs pending, of which five could be first-to-file
opportunites. PRX cited Jenloga, Hectorol (one strength), Jalyn, Cymbalta and
Enablex as FTFs (last two are shared exclusivity). PRX believes Anchen could
launch 8-10 products over the next two years. While Anchen specializes in solid
dose and extended/controlled release products, PRX could also develop other
types of products (topicals, injectables, etc.) in the future through Anchen’s
collaboration with TWi (Taiwanese company; spun off from Anchen in Apr-2010.
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THE FINAL NAIL IN THE Strativa Coffin! To quote another earlier post

"CURRENT EMPLOYEES> DO YOURSELF A FAVOR AND ABANDON THE SINKING SHIP, when the leadership team is made up of RP, AD, and BH, there is no hope for survival.

Get out now because I heard the severance is awful.
 






Actually the last thing to do is to leave now

when par sells strativa, employees will have the mgt team from the acquirier

I will work my ass off to dress up strativa for acquisition
 












Par Pharmaceutical has agreed to pay $154 million to five states to settle a lawsuit accusing the drugmaker of defrauding Medicaid programs in Texas and four other states, according to an American-Statesman report.

Par, based in Woodcliff Lake, N.J., was accused of improperly inflating its drug costs to bilk Medicaid. The suit also alleged kickbacks, rebates and false price markups. Par denied any wrongdoing as part of the settlement agreement.

The state of Texas will receive a $71.8 million portion of the settlement. Approximately $24 million of Texas' settlement will go into the state's general fund, according to the report. The remaining $82.2 million will be shared by Florida, Kentucky, South Carolina and Alaska.
 






old news from april douche nut

Par Pharmaceutical has agreed to pay $154 million to five states to settle a lawsuit accusing the drugmaker of defrauding Medicaid programs in Texas and four other states, according to an American-Statesman report.

Par, based in Woodcliff Lake, N.J., was accused of improperly inflating its drug costs to bilk Medicaid. The suit also alleged kickbacks, rebates and false price markups. Par denied any wrongdoing as part of the settlement agreement.

The state of Texas will receive a $71.8 million portion of the settlement. Approximately $24 million of Texas' settlement will go into the state's general fund, according to the report. The remaining $82.2 million will be shared by Florida, Kentucky, South Carolina and Alaska.
 












Anonymous said:
Don't blame pc for Strativa's short comings.
Click to expand...

I don't think anyone was blaming PC. PC hasn't just made lemonade from lemons, but practically turned water into wine the last 3 years. Think about what he has accomplished considering most of the last 4 years funding has been diverted into Strativa. Now that generics are the focus again, this company has a bright future.
 






Anonymous said:
I don't think anyone was blaming PC. PC hasn't just made lemonade from lemons, but practically turned water into wine the last 3 years. Think about what he has accomplished considering most of the last 4 years funding has been diverted into Strativa. Now that generics are the focus again, this company has a bright future.
Click to expand...

As long as Lepore stays on the golf course and away from the office . . .
 




























































Rumors of sale of strativa are flourishing. Nice uptick in megace sales acc to ML
should add to the sales price. Pl insisting that adam retain a lead sales position
upon sale although rp's fate is uncertain.
 


















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