Sagent Holding is planning to sell up to an estimated $100 million worth of stock in an IPO. The Schaumburg, IL-based company focuses on developing, manufacturing, sourcing and marketing injectable pharmaceutical products--particularly generics. And as Dow Jones notes, Sagent's filing comes as a wave of patent expirations is expected to benefit generic drugmakers in coming years.
Based on market data provided by IMS Health Incorporated, the company estimates that the U.S. generic injectable industry reported approximately $3.7 billion in sales in 2009 and has grown at a compound annual growth rate (CAGR) of 6.6 percent over the last five years. Furthermore, Sagent says in its filing that sales in its current target market of generic drugs in the U.S. are expected to increase by a CAGR of nearly 10 percent over the next three years as the government continues to focus on reducing medical costs.
Sagent lists a host of big names as its primary competitors: Baxter International, Boehringer Ingelheim Group, Fresenius Kabi, Hikma Pharmaceuticals, Hospira, Pfizer, Sandoz International and Teva Pharmaceutical Industries. As of Oct. 31, the company marketed 21 products, most of which are generic injectable products, and had a pipeline that included 45 new products represented by 77 ANDAs that either are currently under FDA review or were recently approved and pending commercial launch.