The company struggled to IPO but got public in late 2010 with a major valuation haircut (fraction of cash invested) as the only way to feed avery high burn rate supporting its formulation improvement for ageneric migraine drug.
Both private- and government-run insurers are rightly requiring that patients be started on cheaper generic medicines unless there is avery good clinical reason to do otherwise.
"Generic Prozac is a nice, large onetime cash generator, but Barr has assembled avery strong near-term product lineup that is going to continue to drive an accelerating growth profile over the next couple of years, " says Elliot Wilbur, specialty pharmaceuticals analyst at CIBC Oppenheimer.