IntelliPharmaCeutics Inks New Licensing Deal With Mallinckrodt
Shares of IntelliPharmaCeutics soared after the company reported a new licensing deal with Mallinckrodt.
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Shares of IntelliPharmaCeutics International PLC (NASDAQ: IPCI) rose on Tuesday after the company reported a new licensing deal with Mallinckrodt PLC (NYSE: MNK). Specifically, the company entered into a license and commercial supply agreement with Mallinckrodt to market, sell and distribute IntelliPharmaCeutics’s extended release products in the United States.
The agreement is for the following drugs, each with varying levels of FDA approval:
- Quetiapine fumarate extended-release tablets (generic Seroquel XR) — abbreviated New Drug Application (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
Collectively, the present annualized sales by third parties for the currently marketed versions of these products in the United States are roughly $2.5 billion.
Under the terms of the 10-year agreement, IntelliPharmaCeutics will receive a non-refundable upfront payment of $3 million in October 2016. Additionally, 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 United States.
Dr. Frank Scholz, Executive Vice President, Global Operations and President, Specialty Generics, Mallinckrodt, commented:
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. We look forward to working with Intellipharmaceutics to bring these products to market.
Shares of IntelliPharmaCeutics were up more than 9% to $3.09 on Wednesday, with a consensus analyst price target of $6.67 and a 52-week trading range of $1.41 to $3.33.
Mallinckrodt was last seen up fractionally at $68.34. The consensus price target is $93.86, and a 52-week range is $50.90 to $85.83.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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