First and foremost, any time the FDA approves a drug, it opens the door to a revenue opportunity for the company that makes it. In this particular case, Amneal Pharmaceuticals is the company with the newly opened door to a revenue opportunity.
So, let’s take a look at this opportunity. A leading healthcare data and analytics provider, IQVIA puts annual revenues of NuvaRing in the United States for the period ended October 31, 2019 at $976 million.
There are a couple of things to consider here. First and foremost, it is unreasonable to expect that any single product would take an entire market in which there are multiple options, regardless of benefits on a financial level. It’s also important to remember that generic options are far less expensive. So, saying that this product would generate $976 million annually would be an exaggeration to say the least.
Nonetheless, considering all factors, I believe that a good estimate would be that the company will generate between $200 and $300 million annually from the treatment. With a market cap around $1 billion, that’s a big win for AMRX!
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