Apricus Biosciences Inc (APRI) Stock Scores Win on Vitaros Approval

Advertisement

Ferring Pharmaceuticals scored a big win Wednesday, as Mexico grants market approval for Vitaros, an erectile dysfunction treatment the company plans to launch in Latin America during the back half of the year. That’s great news for beleaguered Apricus Biosciences Inc (NASDAQ:APRI) stock holders, as the company owns the product with Ferring acting as a commercialization partner.

Apricus Biosciences Inc (APRI) Stock Scores Win on Vitaros ApprovalFor Apricus, the approval in the Mexican market marks the 26th country where Vitaros has been approved. Other such countries include the U.K., Canada and Germany.

According to Apricus CEO Richard Pascoe:

“We are very pleased that Ferring has received its second approval for Vitaros in Latin America. Moreover, we look forward to Ferring`s launches of Vitaros in Latin America throughout the year, in addition to the portfolio of countries across the EU they have the rights to as well. Again, congratulations to the Ferring team for their continued commitment to building the Vitaros global brand.”

Apricus has a distribution agreement for Vitaros in place with Ferring, allowing the company to exclusively sell Vitaros in various countries around the world, including Latin America. The deal has netted APRI $4.5 million upfront, as well as $1.6 million in milestone payments. It’s an especially lucrative deal for the $27 million company, as Apricus can earn as much as $28 million in such milestones, not to mention royalties.

According to Apricus, the market for ED is expansive — 150 million men worldwide are afflicted. What’s notable about Vitaros is, while other ED treatments are taken in pill-form with myriad side effects, Vitaros is a locally applied topical cream with “a favorable safety profile.” This bodes well for APRI stock, as ED drugs of the former variety are associated with a decline in industry growth.

APRI stock was up as much as 160%-plus on the approval, pushing it north of 178% for 2017. Still, it’s a long ways from the $15.50 high it hit in the past year.

As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/01/apricus-biosciences-inc-apri-stock-vitaros/.

©2024 InvestorPlace Media, LLC