Sunday, November 08, 2009

Teva Pharmaceutical Learns Legal Sword Cuts Both Ways

Teva Pharmaceutical (TEVA-$52.03) became the world’s largest generic manufacturer through an unflinching willingness to knock down the patented walls protecting the branded products owned by Big Pharma. This legal brashness has helped the company to build a portfolio of cheaper versions of such well-known drugs as the colorectal chemotherapeutic agent Eloxatin (oxaliplatin) and blockbuster drugs like Adderall XR (amphetamine salts) for narcolepsy and ADHD and Protonix (pantoprazole) for acid reflux.

In recent years the company has sought to mitigate encroaching generic competition – and resultant pressure that shorter pricing life cycles have on margins – by broadening its drug portfolio to include leading branded products. For example, Teva markets in the U.S. the self-administered, subcutaneous injectable for multiple sclerosis, Copaxone (glatiramer acetate), which now accounts for 25 percent of its total domestic sales.

Teva’s own Sword of Damocles, however, now threatens to cut short the patented life of Copaxone, as Mylan and other generic companies are petitioning the FDA to permit market access for their own cheaper, copy-cat versions of Teva’s MS drug. Ergo, Teva has initiated patent infringement lawsuit(s) against Mylan [and others]. Teva scientists argue, too, that the “seriousness of the disease” warrants a thorough review of its competitors’ products, including clinical trials assessing efficacy.

Is Teva learning the legal sword cuts both ways?
Continue Reading at BNET Pharma ….

Editor David J Phillips does not hold a financial interest in any stocks mentioned n this article. The 10Q Detective has a Full Disclosure Policy.

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