Amneal Pharmaceuticals Inc (NYSE: AMRX) rallied in Thursday’s trading session after months of sluggish performance. This followed news that the company had received FDA approval for its vaginal ring called EluRyng, which is the first generic version of NuvaRing.
According to the company’s Co-CEOs, Chintu Patel and Chirag, this is a major milestone for the company’s scientific and regulatory capabilities. They also added that it was a validation of the company’s ability to break barriers to entry, such as developing a product with a complex formulation, and one that requires highly specialized manufacturing. The Co-CEO’s also added that, they were positive about the company’s other opportunities aimed at improving patient care, while at the same time, giving meaningful value to shareholders in 2020, and for years to come.
The company is betting on the success of its generic version of NuvaRing, a top-selling birth control product by Merck & Co. (NYSE: MRK). In Q3 of 2019, MRK generated $202 million from NuvaRing. This is a significant increase in revenues compared to a similar period in the last financial year.
Besides news of the FDA approval for NuvaRing, Amneal has already announced that it would be buying 65.1% of AvKare. AvKare is a private company that focuses on the reselling of generic drugs, and whose primary target market is the veterans’ affairs department. The deal to buy AvKare is worth $340 million. Amneal’s resurgence comes after a stock value erosion, following the company’s entanglement in the opioid investigation that hit several pharmaceutical companies.
Looking at the charts, Amneal was trading between a low of $4.32 and a high of $5.32 before closing the day at $5.04. Volumes in the day stood at 48.2 million.
About Amneal Pharmaceuticals Inc
Amneal Pharmaceuticals Inc is a pharmaceutical company focused on the development of generic drugs. The company is headquartered in Bridgewater, New Jersey.