Teva announced last night it is the first drug company to receive FDA marketing approval for sale of the generic version of the drug Klonopin, developed by Roche Laboratories. Klonopin, known generically as Clonazepam, sells at an annual rate of $300 million in the US.
Two months ago, Teva's management met with Israeli capital market leaders, and announced it would receive a number of FDA approvals for marketing generic products in the US. That announcement has now been realized.
Clonezepam is used to treat seizure disorders in conditions such as epilepsy.
William A. Fletcher, president of Lemmon, Teva’s US generic company, said the drug has the largest potential market of any previously licensed by Teva. He added that Teva is, at present, the only company licensed to market a generic version of Klonopin in the US.
This fact is very important, as the generic market is based on stiff price competition and the only way companies can possibly compete with one another is in being awarded new marketing licenses. Sales of a new generic version of an existing brand name bring in revenues because they compete with the price of the existing brand name product. The first company to receive the FDA marketing license is granted an opportunity to flood the market with its product, and grab the biggest market share possible for that drug.