Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) is set to launch a generic version of Pfizer's cholesterol treatment Lipitor.
Last night Teva announced that its subsidiary, Teva Pharmaceuticals USA, Inc. and Ranbaxy Laboratories Limited had reached an agreement whereby a portion of the profits from Ranbaxy's sales of Atorvastatin Calcium Tablets (generic Lipitor) during Ranbaxy's 180-day first-to-file exclusivity period, will be paid to Teva. Teva declined to disclose the terms of the agreement.
Ranbaxy has exclusivity from the US Food and Drug Administration (FDA) to market a generic version of Lipitor for 180 days, a period when profits will be high prior to the competitive free-for-all when other drugmakers enter the market and prices come crashing down. Thus this agreement is very important for Teva.
In its statement, Teva said that the annual market for Lipitor in the US alone is worth $7.8 billion.
Pfizer's patent for Lipitor expired at midnight and the company has signed an agreement with Watson Pharmaceuticals to market a generic version together.
Teva said in its report for the third quarter that it hopes to "introduce an important undisclosed product" in the fourth quarter, which would boost revenue by $300 million. Teva did not mention the product involved but said that it would result in the company reaching the upper range of its earnings per share predictions of $4.92-$5.02.
Teva also announced that it would begin manufacturing a generic version of Lipitor under its own label after the six month exclusivity period expires.
Teva's share price rose 3% on Nasdaq yesterday to close at $39.61, giving a market cap of $35.05 billion.
Published by Globes, Israel business news - www.globes-online.com - on December 1, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011