Oppenheimer’s October report states that in October Sevoflurane (known as Sojourn for Minrad) sales continue to DOUBLE MONTH TO MONTH:
Summary: We recently spoke with senior management from both Minrad and RxElite (Sojourn distributor). We remain confident that the long-term outlook for BUF remains positive, although near-term financials could remain noisy. Importantly, the key levers remain on track, including: 1) plant expansion should be complete in Q407, and 2) Rx Elite remains on track to hit first year minimums.
(SOUT, Not Covered) imply that Sojourn continues to roll out on-track to hit the first year guidance of 240,000 bottles in the US, with expectations that year two minimums of 360,000 bottles also remain within reach. This is a positive for BUF as the key driver for the stock remains the US launch of Sojourn by RxElite. RxElite further indicates that the number of vaporizer placements are “meaningful” at this point and that month-month Sojourn bottle shipments continue to double.
Rx Elite’s speciality is to take generic drugs that are hard to manufacture and distribute those. This complex manufacturing process serves as a barrier to entry. The fact that there are only three distributors in the world for Sevoflurane will keep the price high as the drug is distributed as a generic drug. A quick review of competitor’s analysis of their sales indicates price erosion is planned to be minimal.
Rx Elite’s distribution of the largest inhalable gas in the world, Sevoflurane. This market is anticipated to be a $35M to $40M business for the first year of distribution. RxElite has announced it sees $100M in sales by 2010, and this is the first in a long line of generic products to be distributed.
These men know the business and know what they are doing:
Jonathan Houssian
Founder
Mr. Houssian is the founder of RxElite in December 2000. Mr. Houssian has a strong background in entrepreneurial growth, sales and finance. Prior to RxElite, he was co-founder and chief executive officer of Sisbro LLC in March 1998, a family investment office for a high net worth family based in Idaho. As the CEO of Sisbro LLC, Mr. Houssian launched, and was the managing partner of four investment partnerships with over $50 million in invested assets and directed over $20 million of venture capital investments focused in healthcare companies. He sat on the board of directors and was involved in developing and implementing strategy of several rapidly growing healthcare companies.
Earl Sullivan
Executive Vice President of Operations
Mr. Sullivan joined RxElite in May 2002 and serves as our executive vice president of operations. Mr. Sullivan brings over 10 years of operations experience and has a track record for success in outsourcing partnerships, operational system development and developing early growth companies into mature platforms. Prior to RxElite, Mr. Sullivan was employed at Green Mountain Energy as its Director of Operations where he built and managed the Midwest region through a period of high growth. Prior to Green Mountain Energy, he joined Express-Med in September 1997 where he held increasingly senior roles including general manager, and helped to build the company from a start-up to over $100M in sales. Mr. Sullivan is an active member in ISPE (International Society of Pharmaceutical Engineers) and PDA (Parenteral Drug Association) as well as participating on several boards for entrepreneurial ventures.
Patrick Poisson
Vice President
Mr. Poisson joined RxElite in January 2007 as our vice president, sterile products where he will oversee the development and manufacture of RxElite’s pipeline of sterile liquid products. Mr. Poisson was employed at Automated Liquid Packaging since 1997, which later became Cardinal Health’s Woodstock sterile products operations in 1999 as a result of an acquisition transaction. At Cardinal, Mr. Poisson successfully manufactured and commercialized numerous generic and branded sterile liquid products as well as led the site’s clinical manufacturing, project management, and business development groups. From 1991 to 1997, Mr. Poisson was employed at Genentech in the areas of sterile manufacturing operations.
What we know:
- Sevoflurane is the most widely used inhalable anesthetic gas in the world.
- RxElite is on track in sales.
- Sales continue to DOUBLE MONTH to MONTH.
- The price of Sevoflurane has not suffered significant erosion as it became generic.
- SOUT is on target with their distribution of Sevoflurane in capturing the projected 11 to 15 percent of the market in the U.S.
Listen to Interview of CEO, Johnathan Houssian, for details!
SOUT: Oppenheimer’s October
- SOUT Interview with CEO MP3:
http://www.stockguru.com/audio/sout10022007.mp3 - SOUT Interview with CEO Windows Media:
http://www.stockguru.com/audio/sout10022007.wma
RxElite has agreements with over ninety percent of the U.S. market for generic drugs. These agreements represent 50 of the top 75 generic drug buyers. See Profile.
Power Point for Investor Profile from Rx Elite
Source: RxElite Holdings, Inc.
RxElite Holdings, Inc.
Ph: (208) 288-5550
Toll Free: (800) 414-1901
Fax: (208) 288-1191 Investor Relations
Charlie Forshee, 215-885-4981
investorrelations@rxelite.com
Segue Ventures LLCAbout RxElite Holdings, Inc.: RxElite Holdings, Inc. develops, manufactures, and markets generic prescription drug products in specialty generic markets. These markets include products in the areas of anesthesia, sterile liquid dose drugs (including respiratory inhalation drugs, ophthalmics, and injectable drugs), and transdermal patch products.
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