- Teva Pharmaceuticals (TEVA) is busily trying to convert users of its MS drug, Copaxone, to its new formulation that has patent protection until 2030 before competing generics launch in May.
- The new version requires thrice-weekly injections instead of daily.
- Copaxone delivers over 20% of the firm's revenues and 50% of its profit, so management is keen to preserve as much of the revenue stream as possible.
- The company offers a $1,000 discount from the current annual cost of $60,500 as an incentive to convert to the new version.
- Investors don't yet seem concerned about the issue since shares are up 23% year-to-date.
- Mutual fund ownership has eased from 1054 to 967 over the past four quarters.