|Market is waiting for FDA approval of the generic Advair medicine.Shorters are having a go until mid May. I am surprised share price has dropped so much on a short time. As soon as these shorts are closed share price should recover again.|
|Interestingly the share price is now down to the same level that Darhold Ltd (the directors holding company) last bought in on 16 December for over £2M. Any repeat of that may trigger the turning point.|
|See post 469.|
|Hikma Pharmaceuticals got a boost on Monday as Numis upgraded the stock to 'buy' from 'add'.It said that following Mylan's Complete Response Letter, the market is now overly discounting Hikma's prospects for gaining approval of its generic version of GlaxoSmithKline's bestselling asthma drug Advair this year.In addition, the share price is now also heavily discounting the core business, Numis said."If Hikma gains FDA approval this year, most likely with minor deficiencies in a complete response letter, we see potential for a slight upgrade to our low-end FY17 forecasts, and a material upgrade to our low-end FY18 forecasts (potentially more than 10%), and envisage a higher multiple being warranted post upgrades (14x FY18 EV/EBITDA well underpinned versus peers)."Numis reckons Hikma has a stronger chance of approval than Mylan because it included 12-18 year olds in its study and has benefited from the expertise of Vectura, a business that, unlike Mylan, has a generic version of Advair Diskus approved in Europe in partnership with Sandoz."In our opinion the current share price is well underpinned by the core business (more than 25% upside), with a free option on generic Advair. This is an asymmetric risk worth taking, with the catalyst now a month away and potential for more than 50% returns if Hikma's generic Advair is approved first time, or with minor deficiencies."In its final results on 15 March, Hikma said it expected revenue for the Generics business to be around $800m this year, with an improvement in the mix of sales and new product launches more than offsetting the impact of increased competition on the marketed portfolio and a reduction in contract manufacturing revenue.The group said certain new launches were expected to contribute around 15% of Generics revenue in 2017, primarily generic Advair, which was assumed to be launched in the second half of the year.Numis has a 2,350p price target on Hikma.|
|Hopefully started. Numis upgraded HIK to buy...any body has more information ?|
|I think we will be due a rebound now.|
|Hikma said it has settled a legal dispute with Jazz Pharmaceuticals over a patent related to Jazz's narcolepsy treatment Xyrem.
Under the settlement agreement, Jazz will grant Hikma and its wholly owned subsidiary, West-Ward Pharmaceuticals, the right to sell an authorised generic of Xyrem in the US market from 1 January 2023 or earlier under "certain circumstances".
The initial deal will last six months and Hikma has the option to extend for up to five years. Jazz has also granted Hikma a licence to market a generic product at the end of the agreement period.
Hikma said it will pay Jazz a royalty on net sales of the generic product, but will initially retain a "meaningful percentage" of net sales.
It will also pay for the supply of the generic and reimburse Jazz for a portion of the service costs associated with the deal. The royalty rate paid to Jazz will increase if the generic term is extended beyond|
|2023! Or am I missing something here?|
|Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced that certain of its subsidiaries have entered into agreements with Hikma Pharmaceuticals PLC and related entities ("Hikma") resolving patent litigation related to Xyrem® (sodium oxybate) oral solution. The litigation, which has been pending in the U.S. District Court for the District of New Jersey since 2010, resulted from the submission by Roxane Laboratories, Inc. (which was subsequently acquired by Hikma) of an Abbreviated New Drug Application (ANDA) to the U.S. Food and Drug Administration (FDA) seeking approval to market a generic version of Xyrem.In connection with the settlement, Jazz has granted Hikma and its wholly owned subsidiary, West-Ward Pharmaceuticals Corp. (West-Ward), the right to sell an authorized generic (AG) version of Xyrem in the U.S. under the Xyrem New Drug Application (NDA), commencing on January 1, 2023, or earlier under certain circumstances customary for settlement agreements of this nature. The AG product will be marketed through the Xyrem Risk Evaluation and Mitigation Strategy (REMS) program. The initial term of the AG arrangement is six months, and Hikma has the option to continue the sale of the AG product for up to a total of five years. Jazz will receive a meaningful royalty on net sales of the AG product, with the royalty rate increasing during the initial AG term based on increased AG sales. There will be a substantial increase in the royalty rate should the AG term be extended beyond one year. Jazz will also be paid for supply of the AG product and will be reimbursed for a portion of the service costs associated with the operation of the Xyrem REMS and distribution of the AG. Specific financial and other terms related to the AG product are confidential. Hikma has been granted a license to sell its generic sodium oxybate product under its ANDA at the end of the AG term."This settlement arrangement provides additional clarity related to our Xyrem intellectual property as we continue our strategy to expand and diversify our product portfolio and R&D pipeline, in line with our goal of delivering new clinically meaningful therapeutic options for patients," said Bruce Cozadd, chairman and chief executive officer of Jazz Pharmaceuticals. "We are pleased that this settlement positions us to facilitate the safe distribution of West-Ward's AG of Xyrem through the Xyrem REMS."As required by law, Jazz Pharmaceuticals and Hikma will submit the settlement agreement to the U.S. Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ) for review.Similar patent litigation brought by Jazz Pharmaceuticals against four other companies that have filed ANDAs with the FDA seeking approval to market a generic version of Xyrem remains pending in the U.S. District Court for the District of New Jersey.For additional information related to the settlement between Jazz Pharmaceuticals and Hikma, please refer to the Current Report on Form 8-K to be filed by Jazz Pharmaceuticals with the Securities and Exchange Commission.|
|Ex div tomorrow. Hope some of this drop can be clawed back soon!|
|This is a real yoyo.
Bounce coming soon I feel.
But maybe more to fall first.
imho dyor etc|
|This is dropping very fast if get to around low£18 then would considered buying but feel it like trying too catch a falling knife but do think it a solid co|
|New ex GSK generic out in May annual sales $400m. What happened to the gout treatment?|
|Peel Hunt reiterates Buy.
Ex div on 6 April - may see an upswing just before then.|
|Battle for £20 is being fought. It looks like share price is getting good support at around £20.|
|According to Bloomberg I am watching, Trump wants to make approval of generic medicines faster to reduce medical costs...this should be good news for HIK in next few years.|
|Latest Broker forecast:-
JP Morgan Cazenove - 28/03 - Reiterates Neutral - 2,400.00p|
|Extremely difficult to predict. It could drift lower or it could suddenly announce some new drug or treatment, and shoot back up again. Personally I doubt whether it would drift lower than 1800, and if it did then the Directors would probably start buying again. But who knows.....|
|Purchased HIK from Sept - Dec, had to average down, due to catching a falling knife.
Decided to sell day before earnings as I had a funny feeling, glad I did now!.
Watching from the sidelines, I think It will slip to 1600-1800 again over the next few months, then will happily buy in again.|
|Spoke too soon - they seem to have popped back over the 2000 line at close of play! I'm off to open a magnum of champagne...................not!|
|Below 2000 as predicted/expected. The test will be how they perform Monday and the rest of next week. Difficult to tell.|
|Arrgghhh! Bought back into these too soon after the early falls from the spike and now paying a heavy penalty! As karateboy commented, the sale by Bassam Kanaan of 43,000 at £21.22 doesn't help at all. I note that there have been no purchases by Darhold Ltd (the main director management company) since they last bought at £18.28 on 16 December.
Shardview - I don't think HIK will fall below say 1850 at the worst, but they seem set on testing 2000 for the moment. Of the current Broker forecasts, the lowest is HSBC at 1800. Others are 2400, 2630 etc - see below:-
JP Morgan Cazenove 21/03 Reiterates Neutral to Neutral 2,400.00p
Peel Hunt 17/03 Reiterates Buy to Buy 2,630.00p
HSBC 17/03 Downgrades Hold to Reduce 1,800.00p
JP Morgan Cazenove 16/03 Downgrades Overweight to Neutral 2,400.00p
Peel Hunt 15/03 Reiterates Buy to Buy 2,340.00p
Cantor Fitzgerald 15/03 Reiterates Buy to Buy 2,500.00p
JP Morgan Cazenove 13/03 Reiterates Overweight to Overweight
Numis 10/03 Downgrades Buy to Add 2,350.00p
Suggest you "keep powder dry" to see what happens tomorrow, and reassess position if they go below 2000 - which seems quite possible!
Other comments:- British Bulls says "Stay in Cash".
FT says "As of Mar 20, 2017, the consensus forecast amongst 12 polled investment analysts covering Hikma Pharmaceuticals Plc advises that the company will outperform the market.".
I definitely think they will come back, but the question is how far might they fall before they come back??? See what happens tomorrow and perhaps look for any further comment over the weekend.
Finally, Shardview, XAR has not produced the goods for me at present and neither (today) has RRS. Distinguished myself by having my top 3 holdings in the top FTSE 100 fallers. Roll on tomorrow........please!|
|Loads of buys going through as sells including my own. Doesn't help.|
|i looking to buy in at below 18 again of course depends on how fast they fall as they fallen faster than expected as some said before this share not for the faint hearted|
|You've got to love these shares! They don't mess about. Seems to be very little rationale. I've just sold my IMB shares(purchased @ 33.80) in prep for buying heavily back into Hikma. Fez, you must be happy with your XAR holding! They're a bit too volatile for me! So, any opinions on where Hikma might bottom out? I'd find it tough to resist 1950, but they made 1575 last time. What I really don't understand is how they can fall so far after such a reaction to the results!|