Intellipharmaceutics Intl. (Nasdaq:IPCI) (TSX:I), the same pharmaceutical company with five ANDAs awaiting FDA approval and which shows great potential as a biotech investment, has just announced that they and Par Pharmaceutical, Inc. (NYSE:PRX) have added the development and commercialization of additional strengths of generic Focalin XR® for the U.S. market to their existing agreement.
Under the terms of the expanded agreement, Intellipharmaceutics will receive an immediate cash payment from Par and will continue to receive a share of profits from future sales.
According to Wolters Kluwer Health, U.S. sales of Focalin XR, used in the treatment of Attention Deficit Hyperactivity Disorder, were approximately US$536 million for the 12 months ending June 2011.
"We are extremely pleased with the expansion of the agreement we currently have in place with Par for the development and commercialization of generic Focalin XR," commented Dr. Isa Odidi, CEO of Intellipharmaceutics. "Today's announcement adds further credibility to the quality of our work and the growth of our Company."
Five strengths (5, 10, 15, 20 and 30mg) of a generic version of Focalin XR are currently the subject of Intellipharmaceutics' pending Abbreviated New Drug Application (ANDA) with the FDA.
Shares of the company have traded as high as $6.12 in recent months, but the recent market sell-off has hurt the low-float, tightly-held stock. Technical indicators show that shares appear poised for a rebound from the current levels but it remains unclear whether this news will actually help.
In June, the company announced that they settled a patent infringement litigation with Wyeth LLC, a wholly owned subsidiary of Pfizer Inc.
Intellipharmaceutics and Par are parties to a settlement of their earlier U.S. litigation against Novartis Pharmaceuticals Corporation, Elan Pharma International Ltd., and Celgene Corp. with respect to the 5, 10, 15, and 20mg products, the terms of which are confidential. Intellipharmaceutics and Par are currently defendants in on-going U.S. litigation against the same plaintiffs as regards the 30 mg product.
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