Which Do You Want First? Teva Pharmaceutical’s Good and Bad News
We’ll start with the bad news: In a decision unlikely to surprise anyone, Teva Pharmaceutical Industries (NYSE:TEVA) has been shot down in its attempt to sue the U.S. Food and Drug Administration. Earlier this month, Teva decided to sue the FDA following a previous decision in which a Supreme Court justice dismissed Teva’s appeal for an injunction that would have blocked generic versions of Copaxone.
“Teva’s suit against the FDA was simply a desperate, last-minute tactic,” said Heather Bresch, Mylan Inc.’s (NASDAQ:MYL) chief executive officer, per Bloomberg. Mylan Inc. is a rival generic drugmaker based in Pennsylvania. “We continue to see no barrier to FDA approval of Mylan’s generic Copaxone following patent expiry.” Mylan intervened in support of the FDA during the suit, according to The Wall Street Journal.
And while Teva’s lawsuit against the FDA might seem ridiculous to some, it’s worth noting that Copaxone means a lot to the Israel-based drugmaker. Copaxone, which was first approved by the FDA in 1997, accounts for more than half of Teva’s revenue and brings in about $3.2 billion in annual sales. The company has been fighting generic rivals like Mylan for years in attempts to protect its blockbuster drug.
Following the court’s decision, a Teva spokeswoman said to The Wall Street Journal that the company is weighing its options; she added that the company is pleased the judge requested a 24-hour notification of final action from the FDA in new abbreviated drug applications.
But Teva’s news hasn’t been all bad this week. The company, which is, ironically, known for its generic medicines, announced Tuesday it would be launching three new drugs this year for a combined total peak sales of about $1 billion.
One of the products, called Zecuity, is a migraine patch medicine that the company acquired when it bought rival NuPathe earlier this year. The other two products to be launched include Adasuve, an inhalation powder used to treat schizophrenic patients by calming agitation (the drug was licensed from Alexza), and DuoResp Spiromax, an inhaler, according to Reuters.
Teva’s chief executive noted at a recent biomedical conference that the firm currently has 15 drugs undergoing Phase III clinical trials, which he says he believes will help the company to “drive organic growth.” Teva said in a press release that it plans to spend 2014 implementing cost-cutting measures and focusing on repositioning itself for long-term value creation.