IntelliPharmaCeutics Intl Inc (USA) (NASDAQ:IPCI) investors cheer the news that the Canadian drug maker has entered into a license and commercial supply agreement with Mallinckrodt LLC, by which IntelliPharmaCeutics has granted Mallinckrodt an exclusive license to market, sell and distribute in the United States the following extended release drug product candidates for which Intellipharmaceutics has abbreviated new drug applications filed with the U.S. Food and Drug Administration:
- Quetiapine fumarate extended-release tablets (generic Seroquel XR®) — ANDA Tentatively Approved by FDA
- Desvenlafaxine extended-release tablets (generic Pristiq®) — ANDA Under FDA Review
- Lamotrigine extended-release tablets (generic Lamictal® XR™) — ANDA Under FDA Review
IntelliPharmaCeutics shares reacted to the news, rising nearly 12% to $3.19 in pre-market trading.
Under the terms of the 10-year agreement, Intellipharmaceutics will receive a non-refundable upfront payment of US$3 million in October 2016. In addition, the agreement also provides for the Company to have a long-term profit sharing arrangement with respect to the licensed products. Intellipharmaceutics has agreed to manufacture and supply the licensed products exclusively for Mallinckrodt, and Mallinckrodt has agreed that Intellipharmaceutics will be its sole supplier of the licensed products marketed in the U.S.
The CEO of Intellipharmaceutics, Dr. Isa Odidi, said, “We are very pleased to establish this long-term commercial partnership with Mallinckrodt, which follows last week’s tentative approval for our generic Seroquel XR®. Mallinckrodt is a respected pharmaceutical company with significant market presence in the U.S. This partnership provides further recognition of Intellipharmaceutics’ technology platform and pipeline. We look forward to the commercialization of generic Seroquel XR® with Mallinckrodt following final approval.”
“This agreement aligns well with our strategy of strengthening our Specialty Generics business and expanding our pipeline. If approved, these drugs will provide patients with alternative treatment options for central nervous system disorders,” said Dr. Frank Scholz, Executive Vice President, Global Operations and President, Specialty Generics, Mallinckrodt Pharmaceuticals. “We look forward to working with Intellipharmaceutics to bring these products to market.” (Original Source)
On the ratings front, IPCI stock has been the subject of a number of recent research reports. In a report released yesterday, Brean Capital analyst Difei Yang reiterated a Buy rating on IPCI, with a price target of $8.00, which implies an upside of 183% from current levels. Separately, on the same day, Maxim’s Jason Kolbert reiterated a Buy rating on the stock and has a price target of $6.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Difei Yang and Jason Kolbert have a total average return of -0.6% and -15.9% respectively. Yang has a success rate of 40% and is ranked #3141 out of 4184 analysts, while Kolbert has a success rate of 28% and is ranked #4080.
Intellipharmaceutics International, Inc. is a pharmaceutical company, which engages in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs. Its patented Hypermatrix technology is a multidimensional controlled-release drug delivery platform that can be applied to the development of existing and new pharmaceuticals in the areas of neurology, cardiovascular, gastrointestinal tract, diabetes and pain.