The following January article (full of rumors) started a multi-month pump (from Jan to May) and dump (underway) to IPXL. It said: "Impax Laboratories(IPXL) has arguably the best manufacturing technology." Note that the current FDA's Warning is just on manufacture quality.
_________ TheStreet Investing Opinion
5 Bargain Biotech Stocks 01/13/11 - 05:10 PM EST By Michael Shulman, for InvestorPlace
NEW YORK (InvestorPlace) -- On July 8, 2009, I recommended five cutting-edge medical products and biotech stocks. Even factoring in the single dud of the group, you would still have an average return of more than 110%.
Do I have your attention? Good, because I've put together a list of the hottest bargain biotech stocks to buy for 2011. Some of the names will look familiar because I think the stocks still have legs, while others have been swapped out for new names that I think have more potential in the year ahead.
Here are the best biotech stocks to own now:
No. 5: Impax Laboratories
The not-so-small generic drug maker Impax Laboratories(IPXL) has arguably the best manufacturing technology for time-released drugs in the entire generic industry. Pfizer's(PFE) patent for its $11 billion cholesterol drug, Lipitor, expires this year. Due to legal actions, it is already known that IPXL has figured out how to make a generic version of a statin drug that could appeal to patients who currently take Lipitor as a maintenance drug for high cholesterol. I expect Impax to market this generic through a partner either in November of this year or six months later in May 2012 due to FDA regulations. Two other major product introductions are anticipated in 2011: generic Concerta for ADHD and generic Solodyn for bacterial infections, currently with combined sales of $1.8 billion. My target for the stock is $35-$40 in one to two years. IPXL is also the possible target of an acquirer.
At the time of publication, Michael Shulman owned shares of CERS and CRIS.
Michael Shulman is the editor of Short-Side Trader.
By re-read this "article," I just amaze that how easy to fool the MOMOs. He said "Impax Laboratories(IPXL) has arguably the best manufacturing technology," in January, 2011. In fact, Impax just got a long and ugly 483 listing from FDA's inspection in Dec 2010 - Jan 2011. More than one dozen "articles" followed cheering loudly. IPXL popped from $20 to $25 and then to above $28. About six months later, now what? The PPS dropped to 2011 low and keep dropping.
I held IPXL for a long long time. But sold during the pumping wave, as I realized something is totally wrong. I may buy back, but in next year -- by Art: the average time frame of FDA's sanction is 18 months followed the 483 list.
Don't fight with me. Please fight with the pumping guys. They are stealing your money, a lot of money. From the beginning, I am trying to help my fellow shareholders by exploring the facts.
Like I said, same BS, different date! Funny how your diligence and interest single on one Pharma stock only. With plenty of issues about the history and conduct of competitors you focus all your hot air on one company. Gee Frank, somebody might think you're a shill for one of IPXL's competitors!
Here we go again. The sky is falling, the sky is falling! If you're down on pumpers, you ought to consider you own obvious attack strategies. IPXL is debt free and expanding generics company with a solid future. They're moving into brand manufacturing, and will have growth in this area in the next three to five years. You continuously write negative and positive things about IPXL as if you are playing both sides of the fence. You take issues like their FDA warning letter and blow them up to be impossible barriers. (Look around Pharma and tell me who isn't getting FDA scrutiny these days!) Stop this one-sided analysis, and come clean about your attempts to create doubt about this stock. You jump on any down turn as an indicator that the stock is crashing, and ignore the positive signs. This stock is going through the same maturation processes that other stocks have shared on their climb in the markets. Use your hot air Frank to blow up balloons for your next "Chicken Little Party"!
I sold IPXL at the price which I disclosed in my previous post. I was intending to buy back at a lower level. But, I ceased the buy-back plan due to FDA's onging "sanction" to Impax's quality problem. I would like to wait for a clarification of the following issues:
A. The outcomes of FDA's re-inspection (2012).
B. Outlook of IPX066.
I think that IPXL would submit the IPX066 NDA near the year end or later.
Though the product is a good one, but there are some balloons flying around it. I would like to have better understanding of the following issues:
B.1. Exclusivities. As a 505(b)(2) NDA, IPX066 will have 3 years exclusivity. They may submit more than one dozen patents about the product. But those USE patents usually weak -- just like the cases Impax challenging majos Pharmas (if Impax can do it to Pharmas, then others can do the same to Impax).
B.2. Exsistant generics.
No matter how Impax claims the superiority of IPX066, cheap generics is a hurdle, particularly cheap generic Sinemet (Impax once tried to copy Sinemet but failed in the court).
B.3. Possible Weak Launch.
Yes, Impas has had 66 Reps selling Lyrica for PFE. However, PFE has had thousands Reps. I don't know how many working on Lyrica, but do know PFE leads the Lyrica marketing. Relatively speaking, Impax's infrastucture is weak and unexpeirnced. Thier 66 Reps may not enough to have a strong launch.
Therefore, better stand by the sideline for a while.