Baxter Acquiring Prism Pharma - Analyst Blog
2011年4月20日 - 1:15AM
Zacks
Baxter International (BAX) recently announced
that it has inked a definitive pact to purchase privately-held
Prism Pharmaceuticals, a specialty pharma company located in King
of Prussia, Pennsylvania.
Per the agreement terms, Baxter will pay up to $338 million,
comprising an initial cash outflow of $170 million and as much as
$168 million in forthcoming revenue-based milestone installments.
Subject to regulatory approvals, the deal is expected to conclude
in the second quarter of 2011. The transaction is not forecast to
materially impact Baxter’s fiscal 2011 results.
Prism Pharmaceuticals developed and then obtained U.S. Food and
Drug Administration (“FDA”) certification for numerous
presentations of NEXTERONE (amiodarone HCl), which is an
antiarrhythmic substance. The NEXTERONE product line does not
contain benzyl alcohol and polysorbate 80. It contains the sole
ready-to-be used premixed intravenous (IV) bag formulations, vials
as well as pre-filled syringe.
The NEXTERONE IV formulations, in a premixed condition, were
recently authorized by the FDA in a couple of readily usable
dosages: 150 mg in a 100 ml package for quick 10-minute loading
infusion and 360 mg in a 200 ml package for future loading and
upkeep infusion.
These formulations do not need mixing, thereby obviating
possible medication mistakes related to compounding. Furthermore,
NEXTERONE can be kept at normal temperature for 2 years. The
product fits in automated dispensing furniture, placing it within
patient care arenas ready for usage during critical situations.
Before its decision to acquire Prism Pharmaceuticals, Baxter was
its contract manufacturer, on the basis of selection by Prism, to
produce the premixed IV bags utilizing Baxter’s own GALAXY
container know how as well as pre-filled syringes.
Amiodarone can be categorized as an antiarrhythmic medicine used
for ventricular tachyarrhythmias or rapid types of irregular
heartbeat. NEXTERONE Premixed Injection is used for starting
treatment and prophylaxis of common ventricular fibrillation and
hemodynamically unstable ventricular tachycardia. NEXTERONE has
several significant contraindications as provided by the
company.
The news regarding Baxter remains mixed. On the positive side,
Baxter’s focus on life-sustaining products, which are not
commoditized, partly insulates it from an economic downturn. The
company is able to generate recurring revenues, and consistent cash
flow, due to its focus on chronic diseases.
On the flip side, despite recent improvement in Plasma Proteins
and Antibody Therapy sub-segments, we are concerned about
stagnation in sales, a slightly somber outlook for some hospital
spending and tightening of reimbursement.
The lingering neutrality surrounding the stock can be lifted by
consistent execution. Baxter is a good bet for value investors
willing to wait as fundamentals improve. Among others, it competes
with Becton, Dickinson and Company (BDX) and
Talecris Biotherapeutics Holdings Corp. (TLCR) in
certain niches. We currently have a long-term Neutral rating on
Baxter.
BAXTER INTL (BAX): Free Stock Analysis Report
BECTON DICKINSO (BDX): Free Stock Analysis Report
TALECRIS BIOTHR (TLCR): Free Stock Analysis Report
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