Barr Pharmaceuticals Inc. announced it expects its morning-after contraceptive PLAN B sales to reach US$ 80m, up from US$40m in 2006 and US$30m in 2005 – according to Bloomberg. US Food and Drug Administration (FDA) approved the pill’s use without doctor’s prescription last August, which is the major driver of the increased sales. Richter is the supplier of the finished form PLAN B for Barr. PLAN B enjoys shelter from generic competition until August 2009 in the USA.
Our view: We see the news as slightly positive for Richter, as Barr had lower sales plans a last November when they expected US$90m to be generated by PLAN B in the next three to four years time horizon. The news confirms the good sales potential of the drug. We expect positive bottom-line impact for Richter, and estimate this could lift our net profit forecast by 1.8% from HUF 37.8bn to HUF38.5bn for 2007 and by 1.6% from HUF 45.3bn to HUF46.0bn for 2008.