- Watson Pharma presented at Jefferies on 9/27/11 - click here for complete biotech webcast and catalyst calendar with links to my notes.
- WPI is among the larger companies I follow due to Partnerships (here, with AIS for Anturol) or competition (here, with MNTA for generic Lovenox aka enoxaparin) with BiotechDueDiligence coverage universe stocks.
- See below for my notes-
- Analyst host: WPI stock is +30% year to date, while competiors Teva, Par, Mylan all down
- 130 ANDAs pending at FDA. We spend alot of money on drug development in generics
- We also have global branded business in urology and women's health. In these fields, the biggest brands are usually about $200m in sales, which fits our focus, and they tend to be left out by big pharma
- Gelnique was just 2 wks ago approved in EU for overactive bladder (OAB), and we recenlty also got our first Canadian approvals
- We also own a distributor, names "Anda", that distributes to 60,000 customers
- AIS deal for Anturol OAB gel described as "line extension" of gelnique
- 11/30 we will launch lipitor generic with compeititon
- preclinical rFSH is our first biologic program via Eden Biodesign acqusition.
- biologics - our goal to become a major player in 7-10 years.
- We want to build on our strength in women's health and urology
- Biosimilars - no interest to be in first phase, first 3 products (GCSF, EPO , HGH)
- we beleive biologics will be sold in US with salesforce, no matter what [this stance would have to change to be a potential MNTA partner]
- We are thinking about biosimilars vs biobetters
- We've evaluated 160 companies, narrowed down to 5 now, in next few months will announce new collaborations
- No mention of Lovenox during company presentation!! [This was unbelievable to me...if you are excited and about to launch in the next quarter only the second generic enoxaparin into a multibillion dollar markets...wouldn't you bring it up? To me this would convey 1) inability to produce sufficient quantities of drug; 2) inability to launch quickly; or 3) concern about liability from the MNTA patent lawsuit]
- compare lovenox and lipitor opportunities? benefits beyond cash flow during exclusivity period for Lipitor? Lipitor is a high profile drug. 160m tablets per month, $8b sales in US. We have the authorized generic from PFE. In first 180 days, it will be us and one other company, likely Ranbaxy. Part of profits flow to Arrow (previous acquisition) and PFE. after 180 days, more competition, could be 2-3 more entrants immediately, 3 more over next 6 months. When there are that many players, not much left on price. Lovenox - higher barrier to entry and price. high profile. Sandoz has a strong presence, especially in retail, SNY has kept fair bit of hospital market. Amphastar will have hospital market, Watson has retail (divide market). We share profit 50/50% with Amphastar.
- Lovenox legal obstacles from Sandoz? MNTA/Sandoz has sued. We will defend that. We will have to see how the case goes, it is not yet in court.
- that won't prevent you from launching? I wouldn't expect an injunction, but it goes in front of the judge. "It's not a given that they would get an injection" [interesting wording, and avoided commenting on whether they would launch at-risk before settling legal matter]
- 2200 pending ANDAs... FDA can deal with 500-600 per year.... math doesn't work
- Why not first wave of US biosimilars? Conscience decision or late in starting? partly conscious decison, partly lucky. Companies developing first wave have spent alot of money, and I'm confident none of these will be profitable indivually. We look at what they have done right and wrong. We also weren't built to take on the challenge to start 5-6 years ago. We are certain you really need a sales force in US.