hares of IntelliPharmaceutics International (NASDAQ: IPCI) saw a nearly 6% increase in trading on Tuesday, February 2nd following the company’s announcement that it has signed an exclusive licensing and manufacturing agreement with Teva Pharmaceutical Industries (NYSE: TEVA) for an extended release oral drug product candidate.
Under the agreement, Intellipharmaceutics has agreed to manufacture and supply the undisclosed product exclusively for Teva. In turn, Teva has agreed that Intellipharmaceutics will be its only supplier of the undisclosed product to be marketed in the United States.
It is unknown what the product is or when/if the product will be approved by the FDA. If the product is approved, it is also unknown if it will bring in significant revenue for the Company.
IntelliPharmaceutics currently has 7 abbreviated new drug applications (ANDAs) under FDA review. However, some of its ANDA’s have already passed the allotted 35 month median review time.
The CEO of Intellipharmaceutics, Dr. Isa Odidi, said, “We are very pleased to establish this manufacturing and supply relationship with Teva. Teva has significant market presence both in the U.S. and globally, and this partnership provides further recognition of Intellipharmaceutics’ technology platform. We look forward to manufacturing this product for Teva in the future at our FDA-approved manufacturing facility in Toronto.”
IntelliPharmaceutics currently has a similar agreement with Par Pharmaceutical Companies, Inc. that was established in November of 2013. Par obtained the exclusive rights to commercialize IntelliPharmaceutics dexmethylphenidate hydrochloride extended-release capsules for the 15 and 30 mg strengths upon FDA approval.
Following IntelliPharmaceutics’s announcement, Brean Capital analyst Jonathan Aschoff weighed in on the company on February 3rd, reiterating an Outperform rating on the stocks and an $8 price target. He noted, “we believe Intellipharmaceutics is well positioned for at least one ANDA approval this year. Currently, Intellipharmaceutics is partnered with Par to market generic Focalin XR in the US, but with more downstream economics from the Teva deal than from the Par deal, the Teva deal, in our view, will be more lucrative for Intellipharmaceutics.”
Jonathan Aschoff currently has an overall success rate of 57% recommending stocks and a +9.6% average return per recommendation.
Separately on February 2nd, Maxim Group analyst Jason Kolbert reiterated a Buy rating on IntelliPharmaceutics with a price target of $7. The analyst noted, “We don’t know which ANDA Teva licensed but we do know the terms of this deal are more favorable, over the long run, to the company than the deal with Parr for Focalin done so many years ago.” He added, “A deal with Teva is validating and we are now seeing the best of both worlds; ANDA driven deals that should fund the company as 505B2 pipeline products advance.”
Overall, Jason Kolbert has a 41% success rate recommending stocks and a +5.6% average return per recommendation.