 |
 | |
 |  |
| We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level. |
Anyone following Barr Labs BRL? Today it closed at 35 7/8 up 3 on no news. Any good rumors cooking out there? They are waiting for an FDA approval for their conjugated estrogen product (market estimated at $1 billion) This is all I could find from my files. Post if you run into something more recent! How long can AHP American Home hold back the approval process of Conjugated estrogens: Medicine: Premarin Maker Ties Up FDA To Fight Rivals The Wall Street Journal--January 24, 1997 EXCERT from Motley Fool Nightly News of January 29, 1997 BARR LABORATORIES (AMEX: BRL) gained $1 5/8 to 34 1/4 after the generic drug company announced the availability of its 50 milligram-strength Demerol equivalent. The drug is a common painkiller for moderate to severe pain and is prescribed around the world. Any news of this type is a positive for Barr, since the company relied upon the distribution of a breast-cancer treatment, Tamoxifen Citrate, for 75% of its sales last quarter. Despite the danger inherent in relying upon low-margin distribution sales, investors have bid up Barr from its summer low of $22 3/8. Now trading at 58 times annualized earnings, the idea is that Barr can get its operating margin somewhere north of 15%. On yearly sales of $250 million+, that would bring the P/E down to the 20s range, in-line with the rest of the industry. My comments: It seems that your coverage on Barr is quite biased, anemic and laced with amnesia. The PE of 56 is based on FUNDAMENTALS!!!! Barr has consistently reported NEWS which will have a positive impact on SALES and Earnings. The news today is part of Barr's strategy to differentiate itself from all other generics. It is evident that in thecourts they have been quite sucessfull with the Tamoxifen and CIPRO decision which will be positive $$$$ for their earnings. A cool $24.55 million to be paid in January 1997 and (quote from BRL, but check out the official press release: "The settlement of the patent challenge is comprised of two components:an initial cash payment to Barr of $24.55 million, paid in January 1997, and a contingent, non-exclusive Supply Agreement which becomes effective in January 1998 and endswith the expiration of the patent in December 2003. Under the contingent Supply Agreement, Bayer has the option to make payments to Barr or to provide Barr with quantitiesof ciprofloxacin that Barr would market pursuant to a license from Bayer. Barr believes thatthe annual value of the settlement to Barr has the potential to provide value similar to that received in 1997". The press release says a cash payment of $24.55 million. Am I missing something???? How about that for a company with 1996 net income of $7 Million. Thatadds up to $2.16 EPS, with a stock price of $34 that gives a PE of 15.7!!!!!!!!!!!!!! To bring your analysis in perspective the expected share price should be $43.2. Not bad. The stocks are going up based on all the following positive news which result from a strategy put into place after the BARR 1992 FDA situation. CAll them up as I did. They will be glad to answer your questions. FDA Clears Barr Labs To Market Meperidine 50-mg Tablets Dow Jones News Service--January 28, 1997 Medicine: Premarin Maker Ties Up FDA To Fight Rivals The Wall Street Journal--January 24, 1997 Barr Labs 2Q Net 15c A Shr VS 14c Dow Jones News Service--January 23, 1997 Price Pressure Continues To Hurt Generic Drug Cos.' Earns Dow Jones News Service--January 21, 1997 Gruntal Ups Barr Labs To Outperform From Neutral Dow Jones News Service--January 20, 1997 Health: Bayer Will Pay Barr, Rugby Laboratories To Settle... The Wall Street Journal--January 20, 1997 Bayer AG, Barr Labs Settle Litigation On Bayer Patent Dow Jones News Service--January 17, 1997 You forgot to mention that they also got approval for mesgetrol acetate(MEGACE). This is part of their differentiation strategy in which thaywill make "niche" type pharmaceutical i.e. cytotoxic (Tamoxifen,Megestrol Acetate, Methotrexate). EXCERT from BRL home page. > The majority of the Company's sales are generated by its> oncology products. Today, Barr's oncology product line includes> three important cancer therapies -- Tamoxifen, Methotrexate> Sodium, and Megestrol Acetate -- as well as Leucovorin Calcium,> a product that helps to lessen the side effects of many cancer> treatments. These products are important components in the > arsenal of medications available to the physician when seeking to> combat cancer. In addition, the Company is emphasizing the> development of additional oncology medicines as part of its> multi-million dollar product research and development efforts. A filling with the FDA is pending for another key strategic product (conjugated estrogens) a potent hormone used for hormone replacement therapy (HRT) for menopause. It is estimated in the Business Week (Feb.3, 1997) article that sales will reach $5 Billion in the next 5 yearsdue to the aging of the baby boomers. Check it out TIME ran an articleon the controversies of HRT's. Check out all the companies who are orwill market HRT patches. Do a search on WSJ, Bloomberg or get someindustry report on the subject (MEDNEWS, IMS) These kind of products aremanufactured in special facilities due to their toxicity. This issomething not every run of the mill generic company can do. Conjugatedestrogens ia a $1 Billion product and the FDA is closing in on the needfor delta 8,9 in the formulation. FDA has responded to a citizenpetition on this subject and will have to rule soon. Check the FDA CDERsite. No matter the decision, BARR already has a source of delta 8,9identified as reported to the press in early 1996. No matter the FDAdecision, they will be in the market. How about crunching the number for a $1Billion dollar products. What kind of PE's does it justify??? What assumtions to make for first year penetration, profit margins etc???? Lets not forget The challenge to Lilly's PROZAC patent another more than$1.5 Billion product. BAsed on Barr's history of litigation, I believe my money is on BARR. By the way, I am a fundamental investor laying on 1300 shares of BRL based on the aforementioned fundamentals and plan tohold unto it for my retirement no matter how south the stock goes!!!!!!! | ||||||||||||||
|
| Home | Hot | SubjectMarks | PeopleMarks | Keepers | Settings |
| Terms Of Use | Contact Us | Copyright/IP Policy | Privacy Policy | About Us | FAQ | Advertise on SI |
| © 2026 Knight Sac Media. Data provided by Twelve Data, Alpha Vantage, and CityFALCON News |