Oppenheimer’s October report states that in October Sevoflurane (known as Sojourn for Minrad) sales continue to DOUBLE MONTH TO MONTH:
Summary: We recently spoke with senior management from both Minrad and RxElite (Sojourn distributor). We remain confident that the long-term outlook for BUF remains positive, although near-term financials could remain noisy. Importantly, the key levers remain on track, including: 1) plant expansion should be complete in Q407, and 2) Rx Elite remains on track to hit first year minimums.
(SOUT, Not Covered) imply that Sojourn continues to roll out on-track to hit the first year guidance of 240,000 bottles in the US, with expectations that year two minimums of 360,000 bottles also remain within reach. This is a positive for BUF as the key driver for the stock remains the US launch of Sojourn by RxElite. RxElite further indicates that the number of vaporizer placements are “meaningful” at this point and that month-month Sojourn bottle shipments continue to double.
Rx Elite’s specialty is to take generic drugs that are hard to manufacture and distribute those. This complex manufacturing process serves as a barrier to entry. The fact that there are only three distributors in the world for Sevoflurane will keep the price high as the drug is distributed as a generic drug. A quick review of competitor’s analysis of their sales indicates price erosion is planned to be minimal.
Rx Elite’s distribution of the largest inhalable gas in the world, Sevoflurane. This market is anticipated to be a $35M to $40M business for the first year of distribution. RxElite has announced it sees $100M in sales by 2010, and this is the first in a long line of generic products to be distributed.
What we know:
- Sevoflurane is the most widely used inhalable anesthetic gas in the world.
- RxElite is on track in sales.
- Sales continue to DOUBLE MONTH to MONTH.
- The price of Sevoflurane has not suffered significant erosion as it became generic.
- SOUT is on target with their distribution of Sevoflurane in capturing the projected 11 to 15 percent of the market in the U.S.
Listen to Interview of CEO, Johnathan Houssian, for details!
SOUT: Oppenheimer’s October
- SOUT Interview with CEO MP3:
http://www.stockguru.com/audio/sout10022007.mp3 - SOUT Interview with CEO Windows Media:
http://www.stockguru.com/audio/sout10022007.wma
RxElite has agreements with over ninety percent of the U.S. market for generic drugs. These agreements represent 50 of the top 75 generic drug buyers. See Profile.
Power Point for Investor Profile from Rx Elite
Source: RxElite Holdings, Inc.
RxElite Holdings, Inc.
Ph: (208) 288-5550
Toll Free: (800) 414-1901
Fax: (208) 288-1191 Investor Relations
Charlie Forshee, 215-885-4981
investorrelations@rxelite.com
Segue Ventures LLCAbout RxElite Holdings, Inc.: RxElite Holdings, Inc. develops, manufactures, and markets generic prescription drug products in specialty generic markets. These markets include products in the areas of anesthesia, sterile liquid dose drugs (including respiratory inhalation drugs, ophthalmics, and injectable drugs), and transdermal patch products.
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