New Beta Blocker on the Crowded Street

Apparently the deficiencies in the backup manufacturing facility for Forest Laboratories' (NYSE: FRX  ) and Mylan's (NYSE: MYL  ) Bystolic didn't take that long to fix. A little more than two weeks after the duo received an approvable letter for the product, they reported yesterday that the FDA had signed off on its marketability.

Mylan licensed the U.S. and Canadian rights to the drug from a Johnson & Johnson (NYSE: JNJ  ) subsidiary in 2001, and then licensed them to Forest last year. Mylan will pick up royalty payments on the sales for acting as the intermediary and has the right to co-market the drug.

Even with 72 million Americans suffering from high blood pressure, it will be an uphill battle for Forest's sales reps. Bystolic will have a lot of competition, with 18 other beta blockers on the market -- talk about drugmakers spinning their wheels.

Bystolic does have a slightly better side effect profile than the other beta blockers, which sometimes cause fatigue and sexual dysfunction, but that might not be enough for it to compete with generic versions of Wyeth's (NYSE: WYE  ) Inderal and GlaxoSmithKline's (NYSE: GSK  ) Coreg. With Bystolic being priced at almost eight times the price of generic beta blockers, getting doctors to prescribe it doesn't look like an easy task.

Still, if Forest could eventually reach the level of U.S. sales that AstraZeneca (NYSE: AZN  ) has managed for Toprol XL -- $883 million in the first nine months of this year -- even in the face of direct generic competition, that would be a substantial addition to Mylan's and Forest's bottom lines. Forest plans to begin marketing the drug next month, so investors should know fairly soon how the drug is competing.

Nothing can beta block our Foolishness:

As Foolanthropy enters its second decade, join us in working to bring financial education to the world's children. Learn more about Foolanthropy's new direction.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 556922, ~/Articles/ArticleHandler.aspx, 10/24/2014 4:48:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement