Teva’s Copaxone MS Franchise Under Generic Fire (TEVA, MYL)
Shares of Teva Pharmaceuticals (NASDAQ: TEVA) are under fire this morning, in a move which has more irony than one might guess. Mylan inc. (NYSE: MYL) has signed a licensing pact with India’s NATCO Pharma Ltd. to produce a generic version of Teva’s multiple sclerosis treatment called Copaxone.
This involves access to NATCO’s pre-filled syringes of glatiramer acetate, the generic name for Copaxone. Mylan gains exclusive distribution rights as part of the deal in the United States, major markets in Europe, Japan and elsewhere. NATCO already has commercialized its glatiramer acetate product in India and Ukraine.
Copaxone generated about $1.7 Billion in sales for Teva last year, and the company’s totsal currency-converted revenues were about $9.4 Billion. If you have followed Teva for some time you might appreciate the irony in this if you are not a shareholder. Guess were Teva’s largest revenues come from… generic drugs.
Teva closed at $44.76 yesterday and shares are down over $1.00 in pre-market trading on almost 500,000 shares with about 35 minutes to the open.
Jon Ogg
June 10, 2008