Flamel Technologies SA (NASDAQ: FLML)
On Thursday December 31 2016, shares of a small to mid cap pharmaceutical company that manufactures important drugs and medications that are used in surgery rooms across the world, fell nearly 15% after news came out that a competitor has been permitted to produce a drug that would heavily compete with Flamel’s.
The news is that the US Food and Drug Administration approved a Neostigmine Methylsulfate drug, which may compete with Flamel’s existing product, Bloxiverz. –InsiderMonkey
It appears that the competitor’s drug could shave nearly 50 to 55% off of the market share that Flamel has enjoyed owning in this specific area of the market.
Analysts at Roth Capital, one of only a few who follow and rate shares of Flamel, anticipate that Bloxiverz’s market share will fall relatively quickly, from 55 percent to around 33 percent. The experts assume that contracted pricing could tumble around 20 percent, from roughly $50 to $40.
“Adjustments indicate that our 2016 Bloxiverz revenue target could be reduced towards $80M from the current forecast of $117M. This should have a minimal impact on outer years.”
Preliminarily, the aforementioned revenue adjustments could bring the firm’s 2016 EPS forecast down towards $0.60 (from $1.00). However, no impact should be seen in the EPS targets for 2017 and beyond– Benzinga.
Please see the accompanying chart that shows how the stock daily price has been in a long term downtrend and just now has broken its horizontal support level of roughly $13.50 as a consequence of this news.
The red arrows indicate the downtrend which has held at numorous tests and the green arrows show the support level which has held up until now.
Although Roth Capital capital came out during the trading day on Thursday and defended Flamel and their ability to regain market share, time will tell how this will play out in the chart.
Flamel Technologies Profile
Flamel Technologies SA, a specialty pharmaceutical company, develops and commercializes pharmaceutical products based on its proprietary polymer based technology primarily in the United States and Europe. The company owns and develops drug delivery platforms, such as Micropump that allows generating and marketing modified and/or controlled release of solid and oral dosage formulations of drugs; and LiquiTime, which develops modified/controlled release of liquid formulations for patients having issues swallowing tablets or capsules. Its drug delivery platforms also comprise Trigger Lock that develops abuse-resistant modified/controlled release formulations of narcotic/opioid analgesics and other drugs susceptible to abuse; and Medusa, which develops extended/modified release of injectable dosage formulations of drugs. The companys lead products include Bloxiverz, a drug used intravenously in the operating room for the reversal of the effects of non-depolarizing neuromuscular blocking agents after surgery; Vazculep, a phenylephrine hydrochloride injection; and Coreg CR, a non-selective antagonist of Beta 1, Beta 2 adrenergic receptors and a selective antagonist of Alpha 1 adrenergic receptors used for the treatment of moderate to severe heart failure and left ventricular dysfunction following myocardial infarction. In addition, it has various proprietary pipeline products, which are in various stages of development comprising Sodium Oxybate for patients suffering from narcolepsy; Ibuprofen for the treatment of pain; Guaifenesin for the treatment of chest congestion; and Exenatide for the treatment of type-2 diabetes. The company has collaborations with various pharmaceutical and biotechnology companies, including GlaxoSmithKline plc. Flamel Technologies SA was founded in 1990 and is headquartered in Vénissieux, France. YahooFinance