Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has stopped shipments of its generic version of oral contraceptive Ortho Tri-Cyclen Lo, one week after it began shipping its drug.
Teva and Johnson and Johnson unit Ortho McNeil Janssen will meet on July 15 at a preliminary injunction hearing on the patent infringement case related to the drug.
Teva's launch of its version, called Tri-Lo Sprintec, was considered an at-risk launch since the companies were still in patent litigation.
Citi analysts, led by John Boris, believe that Teva shipped at least a 3-month supply of its generic version, and they recall that Teva (previously Barr) had been in settlement talks for Ortho Tri-Cyclen Lo since the beginning of 2008. Citi expects a settlement which will likely provide for a generic launch in Sept 2010 with no authorized generic (AG).
Citi expects Teva to record revenue from the drug in the third quarter of 2009. It forecasts $36 million in sales (1% of total expected sales) for the third quarter, ostensibly from the quantities already shipped, and that the sales will add $0.03 in non-GAAP earnings per share.
Citi rates Teva "Buy", with a $52 price target.
Teva closed yesterday at $49.26, giving a market cap of $42.02 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2009
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