Raymond James sees weakness in Priority Healthcare (PHCC).
Analyst John Ranson says August prescription data from NDC Health showed the worst sequential decline in market-wide hepatitis C product sales, with revenues and prescriptions declining approx 9% sequentially. Priority Healthcare distributes Schering-Plough's market leading hepatitis C product, Rebetol.
Ranson anticipates pressure on all participants in the hepatitis C channel, including Priority Healthcare, which generates 13% to 15% revenues from this product line. Also, he notes year-over-year revenue comparisons are difficult in the latter months of 2003.
Additionally, three companies are poised to distribute generic Rebetol if ongoing litigation is successfully resolved; this would open the door for generic competition and create further pressure in revenue comparisons.