*Impax Laboratories is set to benefit from CVS selling its 2-pack generic version of the Adrenaclick pen for only $110.
*Impax stock has a low valuation from the recent steep sell-off.
*Impax is expected to be profitable in 2017, which will help catalyze the stock.
The controversy over Mylan (NASDAQ:MYL) raising the price of EpiPens to over $600 for a 2-pack created a need for lower-cost epinephrine injectors. Many of those who are susceptible to anaphylactic emergencies tend to keep a few injectors around because you never know when an emergency will occur or how much epinephrine you'll need to relieve the symptoms. Twenty-five percent of those with food allergies require a second dose of epinephrine. Therefore, doctors will recommend those with severe food allergies to carry 2 injectors. Those who have children with the condition are likely to keep more. For example, in many cases, a student will have to keep one or two EpiPens with their teacher and another one or two with the school nurse while keeping one or more at home.
Any unused medicine eventually expires, so there is an ongoing need to purchase epinephrine injectors even if they are not used. This high cost has consumers looking for less expensive alternatives. Recently, CVS Health (NYSE:CVS) announced that they will sell a generic version of Amedra Pharmaceuticals' Adrenaclick epinephrine injector pen for only $109.99 for a 2-pack. Impax Laboratories (NASDAQ:IPXL) is set to benefit as the company produces the generic version of Adrenaclick.
I think CVS Health's decision to sell a lower cost epinephrine injector will have a ripple effect with other pharmacies following suit to remain competitive. CVS has over 9,600 pharmacy locations, which will act as a large distribution system for Impax Laboratories' generic epinephrine injector pen. This large retail distribution system will bring more awareness for the generic product, thus boosting Impax's revenue.
*Impax stock has a low valuation from the recent steep sell-off.
*Impax is expected to be profitable in 2017, which will help catalyze the stock.
The controversy over Mylan (NASDAQ:MYL) raising the price of EpiPens to over $600 for a 2-pack created a need for lower-cost epinephrine injectors. Many of those who are susceptible to anaphylactic emergencies tend to keep a few injectors around because you never know when an emergency will occur or how much epinephrine you'll need to relieve the symptoms. Twenty-five percent of those with food allergies require a second dose of epinephrine. Therefore, doctors will recommend those with severe food allergies to carry 2 injectors. Those who have children with the condition are likely to keep more. For example, in many cases, a student will have to keep one or two EpiPens with their teacher and another one or two with the school nurse while keeping one or more at home.
Any unused medicine eventually expires, so there is an ongoing need to purchase epinephrine injectors even if they are not used. This high cost has consumers looking for less expensive alternatives. Recently, CVS Health (NYSE:CVS) announced that they will sell a generic version of Amedra Pharmaceuticals' Adrenaclick epinephrine injector pen for only $109.99 for a 2-pack. Impax Laboratories (NASDAQ:IPXL) is set to benefit as the company produces the generic version of Adrenaclick.
I think CVS Health's decision to sell a lower cost epinephrine injector will have a ripple effect with other pharmacies following suit to remain competitive. CVS has over 9,600 pharmacy locations, which will act as a large distribution system for Impax Laboratories' generic epinephrine injector pen. This large retail distribution system will bring more awareness for the generic product, thus boosting Impax's revenue.
