Adamis Pharmaceuticals Corp. (NASDAQ: ADMP) saw its shares shoot up early on Monday after the firm announced a partnership with a subsidiary of Novartis A.G. (NYSE: NVS). This was an exclusive distribution and commercialization agreement for Adamis’s Symjepi (epinephrine) product for the emergency treatment of allergic reactions (Type I) including anaphylaxis. This product would directly compete with Mylan N.V.’s (NASDAQ: MYL) EpiPen.
Under the terms of the agreement, Sandoz, the Novartis subsidiary, will obtain the U.S. commercial rights to Symjepi in exchange for an upfront fee and potential performance-based milestones payments.
Additionally, Adamis and Sandoz will equally share net profits generated from sales of Symjepi in the United States. Also as part of the agreement, Sandoz will have commercial rights to the FDA-approved Symjepi Injection 0.3 mg product, as well as the Symjepi Injection 0.15 mg product if approved by the FDA.
However, Adamis will retain the right to commercialize both products in territories outside of the U.S., but has granted Sandoz the first right of negotiation for such territories.
Dr. Dennis J. Carlo, president and CEO of Adamis, commented:
We are very excited about our collaboration with Sandoz. They are among the top pharmaceutical companies in the world and we believe they have the commercial presence and proven track record to maximize the value of Symjepi. We believe the financial terms of this agreement have the potential to bring meaningful recurring revenue to Adamis and we look forward to growing, and possibly expanding, this partnership with Sandoz based on the future success of Symjepi in the market.
Shares of Adamis closed Friday at $3.20, with a consensus analyst price target of $7.41 and a 52-week trading range of $2.35 to $5.85. Following the announcement, the stock was up about 63% at $5.20 in early trading indications Monday.
Novartis shares closed Friday at $75.54, with a consensus price target of $88.16 and a 52-week range of $72.30 to $94.19. The stock was down 1% at $74.78 early Monday.
Mylan closed Friday at $36.14 a share. The consensus price target is $48.63, and the 52-week range is $29.39 to $47.82. The stock was last seen down 1% at $35.76.