Just 2 days, I correctly predicted a move in the Antares Pharma (AIS) stock price move with a short term target of $3.25 on the expectation of news that was coming. In this article, I will explain why I believe a move over $4 a share is coming soon based on several factors.
Today's press release reads in part as follows:
Antares today announced that Meridian Medical Technologies, a Pfizer subsidiary, has entered into a settlement agreement with Teva, Antares' pharmaceutical partner, that will resolve pending patent litigation related to its abbreviated new drug application (NASDAQ:ANDA) for a generic epinephrine auto-injector. According to the terms of the settlement, Teva may launch a generic epinephrine auto-injector covered by its ANDA on June 22, 2015 or earlier under certain circumstances, subject to receipt of approval from the U.S. Food and Drug Administration. Additional terms of the agreement are confidential, and the agreement itself is subject to review by the U.S. Department of Justice and the Federal Trade Commission.
Under a separate agreement, Teva has agreed to provide Antares with device orders of an undisclosed amount in the years 2013 and 2014, to make a milestone payment to Antares upon FDA approval of epinephrine auto-injector, and to assume all litigation costs related to the patent litigation between Teva and Meridian Medical.
The above is a very positive development for Antares, as the company will receive a milestone payment soon, and revenues starting next year.
Lost in all the hoopla concerning the above, I found that Antares just received a patent for a new intradermal injector, further showing the company is progressing nicely.
What I am most excited about is I feel news is coming soon for Nestragel, which is Antares Phase 3 clinical ready Female birth control gel. This product has the potential to generate billion in dollars over the long term for the company in the future. The company recently mentioned that it was looking for a 50/50 partner in terms of partnering deals, and no more royalty deals. Many investors have grown frustrated in the delay with Nestragel, but the buzz I am hearing is that this is soon to end, and a deal is soon to come.
Let's review this market and see how much revenue we can expect from this product and which large pharmas would be interested in parterning for the product.
Johnson & Johnson's (JNJ):
JNJ's Ortho Evra birth control patch has recently come under scrutiny by the FDA for possibly causing serious blood clotting in some women who use this patch as their birth control choice. JNJ might be interested in a Nestragel as many believe the composition of Nestragel is safer and more effective than the patch.
Pfizer (NYSE:PFE) recalled in Febraury, certain lots of the pill Lo/Ovral-38 as well as lots of the generic version norgestrel and ethinyl estradiol tablets. The pharmaceutical manufacturer recalled nearly 1 million birth control pills after realizing that some of the placebo pills were placed within the daily active pill cycle.
Being a gel, Nestragel would not face the type of issue faced above. I strongly feel Pfizer may be the big player for Nestragel, and that we can expect news on this very soon. I also feel Pfizer will buy-out Antares at some point within the next year.
Merck (MRK) is the manufacturer of the NuvaRing, a combined hormonal contraceptive vaginal ring available by prescription and Implanon, a single-rod long acting reversible hormonal contraceptive birth control subdermal implant that is inserted just under the skin of the upper arm
Teva (TEVA) produces various pharmaceuticals including women's health care products, oral contraceptives, and intrauterine contraception.
Church & Dwight Co., Inc. (CHD), producer of household, personal care, and specialty products, is probably most known for its Arm & Hammer baking soda product. The company makes and markets the Trojan brands of prophylactics.
All of the above companies generate billions in the female birth control segment worldwide. As I correctly predicted in my last article about news coming, I am also predicting here that news is on the way that I expect to take the Antares price per share well north of $3.50 in the next 2 weeks or less and a move to near $4 shortly afterwards.
Disclosure: I am long AIS.
Additional disclosure: DISCLAIMER: This article is intended for informational and entertainment use only and should not be construed as professional investment advice, but rather my opinions as a writer only. Always do you own complete due diligence before buying and selling any stock.