Gaining patent protection for drugs is an essential part of the pharma and biotech sector. Companies seek strong patent protection so as to prevent the entry of generic competition for their drugs. Innovator companies often spend 10-15 years to develop a drug and bring it to market. With a lot of R&D dollars invested in the development of these drugs, innovator companies look to gain exclusivity so that they can recover their investment in product development.
Earlier this week Mallinckrodt plc (MNK) said that the United States Patent and Trademark Office granted a patent (U.S. Patent Number 8,658,631) to Xartemis XR containing composition claims with regard to its design, formulation, pharmacokinetic and release characteristics.
Xartemis XR (oxycodone HCI and acetaminophen), an extended-release oral formulation, is currently under FDA review for the management of acute pain in a post-surgical model. The company said that it will launch Xartemis XR in the second quarter of fiscal 2014, provided the candidate is approved by the FDA.
We remind investors Mallinckrodt recently launched another pain drug, Pennsaid 2%.
Meanwhile, Mallinckrodt is actively focusing on strengthening its pipeline and promoting new products in the pain market. The company expects to file for approval for another pain candidate, MNK-155, in the second half of fiscal 2014.
Earlier this month, Mallinckrodt announced its intention to acquire Cadence Pharmaceuticals, Inc. (CADX) for about $1.3 billion. With this acquisition, Mallinckrodt is looking to strengthen its specialty pharma segment. Moreover, the acquisition will also add another potential growth area for Mallinckrodt given Cadence Pharma's strong presence in the hospital market.
Mallinckrodt carries a Zacks Rank #1 (Strong Buy). Other well-ranked stocks in the healthcare sector include Impax Laboratories Inc. (IPXL) and Actavis plc (ACT). Both carry a Zacks Rank #2 (Buy).
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