Ahead of the Bell: IntelliPharmaCeutics climbs

IntelliPharmaCeutics continues strong week with premarket gain after FDA product approval

Associated Press

Shares of IntelliPharmaCeutics International Inc. jumped again Wednesday before markets opened, as the generic drug developer continued a strong week that started with a key product approval.

The Canadian company said Monday that the Food and Drug Administration gave final approval to 15- and 30-milligram doses of its generic version of the Novartis attention deficit-hyperactivity disorder treatment Focalin XR. Intellipharmaceutics will have about six months of marketing exclusivity for the 15-milligram dose.

It said the extended-release capsules will be launched immediately in the United States by its commercialization partner, Par Pharmaceuticals Inc.

The exclusivity period for the 15-milligram dose was unexpected, according to Roth Capital Partners analyst Scott Henry. He said in a research note that he estimates that the dose could book more than $34 million in sales during that window. Henry raised his price target on the shares to $6 from $4.50.

Maxim Group analyst Jason Kolbert also raised his price target on the stock to $9 from $7.

IntelliPharmaCeutics stock climbed 9.3 percent, or 46 cents, to $5.41 Wednesday in pre-market trading. That price had already more than doubled in heavy trading on Tuesday, after closing Monday at $1.89.

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