Boston, MA 04/22/2014 (wallstreetpr) – Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is a $48 billion Israel-based drug company. The company is facing possible competition from generic drug manufacturers that are vying to develop generic version of its blockbuster drug, Copaxone. Efforts by the company to block generic manufacturers from developing cheaper versions of the drug have failed, although the company lodged an appeal with the U.S. top court to protect Copaxone from the premature competition.
The company generates $3.2 billion in annual sales of the drug in the U.S. The performance of Copaxone accounts for more than half of the profit that the company makes. Therefore, the company could feel much heat in the event that generic developers have their way in the patent clash case.
Following the failure by the U.S. top court to stop generic developers of Copaxone, the drug could face competition from as early as next month. The companies seeking to develop generic Copaxone include Sandoz, a subsidiary of Novartis AG, Momenta Pharmaceuticals Inc and Mylan Inc. The generic manufacturers are waiting for the Food and Drug Administration approval that will come when patent protection of Copaxone expires. Teva sought to stay patent protection on Copaxone until September 2015, a court quashed the application.
Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) could also face more competition on a number of its bestselling drugs whose patent protections are expected to expire soon or later.
Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) could recover damages from developers of the generic version of its drug if it wins the appeal. The U.S. top court cited this option in its decision to reject an application to block generic manufacturers from going ahead with their development plans.
Therefore, all is not lost for Teva even though it cannot be sure about winning the appeal against the generic developers. Moreover, troubles for the company are just getting started given that more drugs are set to lose their marketing exclusivity soon or later.
Shares of Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) have jumped about 27 percent so far in 2014.