March 27 Impax Laboratories Inc, which
is said to be conducting a strategic review, named former
Allergan Plc executive and industry veteran Paul Bisaro
as its chief executive, sending the drugmaker's shares soaring
as much as 38 percent.
The past year has seen mounting pressure on generic
drugmakers, as speedier approvals of generic products by U.S.
regulators ratchet up competition in the sector, squeezing
smaller players such as Impax, that lack bargaining power.
Impax has asked investment bank Morgan Stanley to
help it conduct a strategic review, people familiar with the
matter told Reuters earlier this month.
Bisaro, 56, was largely behind transforming a much smaller
generic drugmaker Watson Pharmaceuticals, at a couple of billion
dollars in market cap, into the current version of Allergan with
a market valuation of about $80 billion.
Given some of Impax's near-term challenges and Bisaro's
still relatively young age, Leerink analysts believe he is
committing to a process that may not be short-term.
However, the hire and the Reuters report suggest Impax will
be an active acquirer or future M&A target, Leerink said.
Bisaro, whose appointment is effective immediately, succeeds
Kevin Buchi, who has served as interim president and chief
executive since December.
"Bisaro is one of a handful of experienced generic industry
executives we have gotten to know over the past 18 years that
has demonstrated a solid track record of execution," BTIG
analysts said, raising their price target to $16 from $13.
Impax's shares were up 38.65 percent at $12.83, set for
their best day in more than 8 years.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Shounak