Oh and another thingCovidien stated that they wrote of $ 20 million in receiveables from Greece. I wonder if the problems in that country affected NRI? Need2
This was interesting......
The drug was launched at the end of April. According to data from IMS Health Inc. (RX) viewed by Dow Jones, 971 prescriptions were written the week of May 28, 759 the week of May 21, 558 the week of May 14, 363 the week of May 7, and 126 week of April 30, its launch week.
"While it is still very early in the launch, we're very encouraged with the positive reception PENNSAID has received from physicians and patients," said Covidien spokeswoman JoAnna Schooler, adding the company believes the product is a "convenient and innovative" treatment for patients with osteoarthritis of the knee seeking pain relief.
The drug has been available for a while in markets like Canada, the U.K., Italy and Greece, but regulatory delays kept PENNSAID out of the U.S. longer than expected. Its main competition is Voltaren Gel, developed by Endo Pharmaceuticals Holdings Inc. (ENDP), which is also a non-steroidal anti-inflammatory drug, or NSAID.
Nuvo deferred comment on the sales results to Covidien. In its latest investor presentation, Nuvo notes the label for PENNSAID - a treatment for the signs and symptoms of osteoarthritis of the knee - is more specific than Voltaren's label. In addition, it says that in a market where both products are sold - Greece - PENNSAID outsells Voltaren.
Evan McCulloch, portfolio manager of the Franklin Biotechnology Discovery Fund, Nuvo's biggest institutional holder, said the prescription numbers are better than he had expected at this point, though it's still too early make any longer-term conclusions. "We're focused on the remainder of the year and 2011," he told Dow Jones.
Still, he has reasons to be optimistic. He estimates the market for the product is expanding at around 40% year-over year, and says the numbers show that PENNSAID is making decent gains in market share. Though Voltaren did much better out of the gate, it didn't have any competition, he noted.
McCulloch also said that sampling is a big part of the PENNSAID launch, with perhaps one million samples made for near-term distribution that patients will be working through. He explained that, when drug launches use heavy sampling, prescription trends aren't indicative of how much use is actually happening. "I certainly think that's the case here as well," he said.
With respect to pricing, his understanding is that PENNSAID is priced at a "slight premium" to Voltaren because Covidien/Nuvo believe it's a superior product. In addition, McCulloch said his own physician surveys show a number of doctors agree and would prescribe PENNSAID over Voltaren.
Covidien said PENNSAID is "priced comparably" to other branded topical NSAID products.
Another thing going for PENNSAID is that topical pain relief products are seen offering safety benefits relative to other pain drugs that have to be injested, McCulloch added.