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Teva working to protect key drug's sales ahead of generic competition

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.

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Comments (1)
  • mikeurl
    , contributor
    Comments (529) | Send Message
    I sold off all my position into this strength. I'm not sure I trust management to pull off a seamless transition when Copaxone goes generic. If they can't the risk is that so much of their profitability goes away rather quickly.


    I think they're priced now with the assumption they pull this off without a hitch. I'd be looking to buy back lower if top and bottom lines take a hit.


    But kudos to Teva for getting the 3 injection patent just under the wire. I'm assuming that is why the stock finally started to move. I'm not convinced that cheap insurance companies aren't going to twist themselves into a pretzel trying to force people on the generic. So it feels too risky for me.
    3 Mar 2014, 12:05 PM Reply Like
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