Post by highskier on Sept 16, 2018 2:02:28 GMT
The stk could take off on Monday. Still in the wings is when the generic EpiPen will be on the market.
Teva Migraine Drug Wins FDA Nod, Bolstering Turnaround Plan
By Yaacov BenmelehSeptember 15, 2018, 4:39 AM EDT Updated on September 15, 2018, 9:35 AM EDT
Ajovy injection seen generating $500 million in sales by 2022
Teva stock gains 6 percent after market close in New York
Teva Pharmaceutical Industries Ltd. won U.S. regulatory approval to sell a new treatment for migraines, a key part of the companyâs turnaround strategy. The stock surged in after-hours trading.
The U.S. Food and Drug Administration approved Ajovy, an injection administered every few months to relieve migraines in adults, the Israeli drugmaker said in a statement late Friday. More than 36 million people in the U.S. suffer from these debilitating episodes, and the medicine could generate around $500 million of sales by 2022, according to analyst estimates compiled by Bloomberg.
Ajovyâs launch could help Teva, the worldâs largest generic drugmaker, eventually replace declining sales of Copaxone, its aging star product. Investors have tracked the new drugâs trajectory as one of the few channels of growth for the debt-ladden pharma giant. Chief Executive Officer Kare Schultz embarked on a massive cost-cutting plan last year and placed debt repayment as his top priority, in effect shelving designs to increase sales in the coming two years.
âImportant Validationâ
With the drugâs approval, Schultz enhanced his credibility with investors, some of whom were skeptical that the company would be able to begin selling the drug on time and thus lose more ground to Amgen Inc.âs Aimovig, which has been on the market since May. Teva shares rose 6 percent after the market closed in New York on Friday.
âHitting this target is very important validation for managementâs credibility,â Evercore ISI analyst Umer Raffat wrote in an emailed note to clients.
Ajovy will cost as much as Aimovig. âWe looked at the value that we believe we will bring to patients and migraine sufferers, and we thought a parity price to Aimovig at $575 a month was appropriate,â said Brendan OâGrady, executive vice president and head of Tevaâs commercial operations in North America.
âWe think this is a huge value for a patient population with a tremendous need that payers will look at this and give pretty broad and open access to the entire class,â OâGrady said.
The competition for the multi-billion dollar market is set to heat up further with the FDA expected to decide on another migraine therapy from Eli Lilly & Co. next month. âMarketing and patient accessâ will be what determines who pulls ahead since the companies offer âsimilar products,â according to a Bloomberg Intelligence note.
The U.S. Food and Drug Administration approved Ajovy, an injection administered every few months to relieve migraines in adults, the Israeli drugmaker said in a statement late Friday. More than 36 million people in the U.S. suffer from these debilitating episodes, and the medicine could generate around $500 million of sales by 2022, according to analyst estimates compiled by Bloomberg.
Ajovyâs launch could help Teva, the worldâs largest generic drugmaker, eventually replace declining sales of Copaxone, its aging star product. Investors have tracked the new drugâs trajectory as one of the few channels of growth for the debt-ladden pharma giant. Chief Executive Officer Kare Schultz embarked on a massive cost-cutting plan last year and placed debt repayment as his top priority, in effect shelving designs to increase sales in the coming two years.
âImportant Validationâ
With the drugâs approval, Schultz enhanced his credibility with investors, some of whom were skeptical that the company would be able to begin selling the drug on time and thus lose more ground to Amgen Inc.âs Aimovig, which has been on the market since May. Teva shares rose 6 percent after the market closed in New York on Friday.
âHitting this target is very important validation for managementâs credibility,â Evercore ISI analyst Umer Raffat wrote in an emailed note to clients.
Ajovy will cost as much as Aimovig. âWe looked at the value that we believe we will bring to patients and migraine sufferers, and we thought a parity price to Aimovig at $575 a month was appropriate,â said Brendan OâGrady, executive vice president and head of Tevaâs commercial operations in North America.
âWe think this is a huge value for a patient population with a tremendous need that payers will look at this and give pretty broad and open access to the entire class,â OâGrady said.
The competition for the multi-billion dollar market is set to heat up further with the FDA expected to decide on another migraine therapy from Eli Lilly & Co. next month. âMarketing and patient accessâ will be what determines who pulls ahead since the companies offer âsimilar products,â according to a Bloomberg Intelligence note.
â With assistance by Bailey Lipschultz, and Cristin Flanagan