Why Adamis Pharmaceuticals Corp (NASDAQ: ADMP) Could Benefit From Mylan’s Woes


Adamis Pharmaceuticals Corp (NASDAQ: ADMP) is in the process of seeking regulatory approval for a rival of Mylan NV (NASDAQ: MYL)’s EpiPen. Analysts have pointed out that Adamis’ product, which is a pre-filled syringe (PFS) targeting patients with anaphylaxis, boasts a number of features that could enable it steal market share from EpiPen.

Adamis Pharmaceuticals Corp (NASDAQ: ADMP)’s PFS delivers epinephrine, which is exactly what Mylan’s EpiPen does. Epinephrine is used to treat anaphylaxis. However, unlike Adamis’ PFS, EpiPen comes with an auto injector and that seems to be the only major advantage it has over PFS.

Analysts at Maxim Group have evaluated the two products and concluded that Adamis’ PFS could be preferable to Mylan’s EpiPen on the basis of shape, size and overall performance.

Taking advantage of EpiPen’s price hike

However, the analysts say that the one area that didn’t initially seem to be a major advantage for Adamis Pharmaceuticals Corp (NASDAQ: ADMP)’s PFS is pricing. Mylan’s recent move to significantly increase the price of EpiPen has triggered a wave of criticism against the company as it is being accused of price gouging. EpiPen now costs $500, with the price shooting sharply from $57 at which the product was selling when Mylan acquired it.

If Adamis sells its PFS at a competitive price, analysts believe it can rapidly take share from EpiPen.

Billion-dollar market – Adamis Pharmaceuticals Corp (NASDAQ: ADMP)

Anaphylaxis treatment is a billion-dollar market that is currently dominated by Mylan’s EpiPen. Therefore, if Adamis’ PFS were to only take 5% to 10% share of that market, it would translate into $50 to $100 million new revenue for the company. That revenue boost can lift the stock of Adamis to great highs.

How long is the wait?

Adamis Pharmaceuticals Corp (NASDAQ: ADMP) plans to resubmit a new drug application (NDA) for its PFS to the FDA. The company’s earlier application triggered a complete response letter from the regulator. The letter asked Adamis to address certain issues before the product can be approved.

The company is working to address the issues outlined by the FDA. As such, Adamis is moving closer to approval of its PFS.

Maxim has BUY rating and $10 price estimate on the stock of Adamis Pharmaceuticals Corp. (NASDAQ: ADMP). The commercialization prospect of PFS is one reason analysts at Maxim are bullish on the stock.


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