Cowen stays Neutral On Santarus (SNTS), Cites Litigation Concerns , PRX, MRK, AZN, NVS
December 02, 2009 1:20 PM
Cowen And Company have maintained a Neutral on speciality pharmaceuticals company Santarus (NASDAQ: SNTS).
Santarus recently received FDA approval for its OTC product Zegerid which is used to treat heartburn. The capsule, which would be marketed by Merck (NYSE: MRK), faces competition from Asta Zeneca’s (NYSE: AZN) Prilosec and Novartis (NYSE: NVS) offering Prevacid.
Analysts expect heightened competition to dampen the growth of the company. In 2010, the company would also be undertaking phase III trials of two other products – Budesonide MMX and Rafimycin. Pending litigation happens to be the wild card in Santarus’s growth prospects. In July the company had announced that the presiding judge had voted in favour of Santarus in its litigation against Par Pharmaceuticals (NYSE: PRX). However legal experts cite past precedent, to indicate that Zegerid patents of Santarus could still be subject to legal scrutiny.
