Intellipharmaceutics International (TSX:I, StockForum), a Toronto-based firm engaged in researching, developing and commercializing controlled release and targeted pharmaceutical products, announced today that the company received its first profit-share payment of approximately US$3.1 million from its licensee Par Pharmaceutical for the sale of dexmethylphenidate hydrochloride extended-release capsules.
The payment represents the company's share of the profits generated through the sale of the 15 and 30 mg strengths of Generic Focalin XR(R) for the period from November 19, 2013 to December 31, 2013.
According to the news release, “Future profit-share payments are expected on a quarterly basis, although the amounts of any such payments cannot now be determined and may vary significantly from time-to-time.”
It went on, “Intellipharmaceutics has the potential to receive its share of the profits on the 5, 10, 20 and 40 mg strengths which were also tentatively approved by the United States Food and Drug Administration ("FDA"), subject to the right of another party or parties to 180 days of generic exclusivity from the date of first launch of such strengths of the drug product by such parties.”
Then added, “The Company currently believes Par intends to launch these strengths immediately upon the expiry of those exclusivity periods and upon the anticipated final approvals from the FDA at those times, but there can be no assurance as to if or when any such approvals or launches will occur.”
Company CEO and co-founder, Dr. Isa Odidi, concluded, “We believe that the number of competitors tentatively approved or in the market at this time is an indication that our drug delivery technologies and competence are robust and well-adapted to the formulation of difficult-to-replicate generic drug products.”
Intellipharmaceutics was in the news recently when the company announced it would present at the 25th annual Piper Jaffray Healthcare Conference at the beginning of December.
Shares rose 8.43% on the news to $4.50 per share.
Currently there are 21.9m outstanding shares with a market cap of $98.6 million.