Shares in Adamis Pharmaceuticals (NSDQ:ADMP) soared more than 50% yesterday after it won FDA approval for its generic EpiPen emergency allergy pre-filled syringe, sending shares in competitor Mylan (NSDQ:MYL) down -3%.
For years, Mylan has commanded more than 90% of the market for emergency epinephrine injectors.
Adamis’ device, called Symjepi, is intended to be a cheaper version of Mylan’s EpiPen. Adamis said it plans to set a price for the device before its launch in the 2nd half of 2017 and that the company is looking for a marketing partner.
Mylan has faced criticism and numerous investigations in the past year, after reports revealed that the company has jacked the price of its EpiPen device up nearly 500% since it acquired the auto-injector in 2007. In response to push-back from consumers, Mylan has since launched its own generic for $300.
“We plan to position the product as a lower cost alternative,” Mark Flather, Adamis’ senior director for investor relations & corporate communications for Adamis, said to Reuters. “We want to be part of the solution.”
“With an anticipated lower cost and attractive design, we believe Symjepi will be a meaningful competitor to EpiPen,” Wells Fargo Securities analyst David Maris wrote in a research note.
There are other competitor products available, like Impax Laboratories‘ (NSDQ:IPXL) Adrenaclick device that is sold at CVS for $110 a pair.
Dennis J. Carlo, President and CEO of Adamis, stated, “We are very excited by this approval, and at the same time, are already preparing to submit our 2nd NDA to the FDA. This 2nd submission is for the junior version of Symjepi. We are committed to helping patients by providing them with additional therapeutic choices,” president & CEO Dennis Carlo said in prepared remarks. “With an anticipated lower cost, small size and user-friendly design, we believe Symjepi could be an attractive option for a significant portion of both the retail (patient) and non-retail (professional) sectors of the epinephrine market.”
Material from Reuters was used in this report.