From Mayne Pharma's presentation in relation to their expansion of their generic range and distribution network.
"Future: extraction of synergies
- Cost synergies from moving products to CMOs and in-house manufacture
- Expanded customer base creating new selling opportunities for the base generics business
- New in-licensing / product opportunities from leveraging expanded network of API/CMO suppliers."
Mayne's recent acquisition of Teva products which had a highly established distribution and customer base has expanded opportunities for all its original generics range and recently launched products such as IDT's Temozolomide. Pharmacies generally like to buy from generic companies that have a wide range of products and reliable and timely supply. There are benefits for pharmacies (discounts, convenience and loyalty programs, etc.) to stick with a supplier. They will tend to get their Temozolomide from the same distributor which adds to their volume of purchases and better overall into store cost for their order parcels.
So Mayne's recent expansion comes at a very good time for IDT's Temozolomide. I am thinking a 10% market share may be on the conservative side.
Also, although the value (not volume) of Temozolomide sales has decreased due to increased generic competition, it was still $150m last report. Recent positives studies of Temozolomide in brain cancer (used in combination with radiotherapy) has possibly expanded the range of patients it is recommended for.
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