Teva Defends Copaxone: Oh, the Irony
Teva's launch-generic-at-risk business model is well-known. The strategy is intended to produce huge profits by making early (premature) generic drugs in the possible wake of losing, or more likely settling, patent-infringement suits. The company's most recent legal tangle on this front is with Pfizer, the paragon of big bad pharma companies, which would like to retain its patent monopoly on the blockbuster Lipitor.* Three weeks ago, Teva launched its own version of the statin in the United Kingdom, and Pfizer responded predictably (and Teva counter-responded).
But Teva also makes its own branded medicines, most notably a disease-modifying drug for multiple sclerosis, Copaxone, which provides the company with a substantial amount of revenue. According to today's WSJ, this MS drug (with a current monthly cost of more than $3500) produced $3 billion in sales last year for Teva or nearly 20% of total company's sales. And now, generic drug makers Mylan and Momenta want to produce their own versions of Copaxone, ahead of the drug's key expiration dates in 2014 and 2015. And so in response, Teva finds itself in the position of its nemesis Pfizer, by using expected legal counter-strategies to defend its still-patented cash cow.
* Which expires next year.
But Teva also makes its own branded medicines, most notably a disease-modifying drug for multiple sclerosis, Copaxone, which provides the company with a substantial amount of revenue. According to today's WSJ, this MS drug (with a current monthly cost of more than $3500) produced $3 billion in sales last year for Teva or nearly 20% of total company's sales. And now, generic drug makers Mylan and Momenta want to produce their own versions of Copaxone, ahead of the drug's key expiration dates in 2014 and 2015. And so in response, Teva finds itself in the position of its nemesis Pfizer, by using expected legal counter-strategies to defend its still-patented cash cow.
* Which expires next year.
