NEW YORK (TheStreet) -- Apricus Biosciences (APRI) shares are up 4.12% to $1.77 in afternoon trading on Thursday after the drug maker announced that it has licensed the U.S. development and commercialization rights for Vitaros from Allergan (AGN).
Vitaros is a topical cream treatment for erectile dysfunction that could be a potential entrant into a U.S. erectile dysfunction market that is dominated by Pfizer's (PFE) ED pill Viagra.
Apricus will be responsible for all of the drug's development efforts in the U.S., though Allergan may elect to exercise a one time opt-in right to assume future marketing activities in the U.S. if the FDA accepts the drug's New Drug Application.
"We are pleased to announce this transaction for the return of the U.S. Vitaros rights to Apricus and we look forward to working with Allergan to transition the regulatory submission back within our organization," said Apricus CEO Richard Pascoe.
TheStreet Ratings team rates APRICUS BIOSCIENCES INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate APRICUS BIOSCIENCES INC (APRI) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."