Teva Pharmaceutical Industries Ltd.
) recently signed a definitive agreement for the acquisition of a
privately-held pharmaceutical and drug delivery company,
MicroDose focuses on inhalation technologies and products that
help improve efficacy and compliance in patients suffering from
lung diseases and infections. With this acquisition, Teva will
gain access to MicroDose's proprietary technology. This includes
a multi-dose dry powder nebulizer device, which needs no
preparation and can be administered in less than 30 seconds.
The lead candidate in MicroDose's pipeline is MDT-637 which is
being developed for respiratory syncytial virus (RSV).
Per the terms of the agreement, Teva will pay $40 million to
acquire all shares of MicroDose. Moreover, Teva may pay up to
$125 million on the achievement of regulatory and development
milestones as well as sales-based milestones and tiered royalties
on the commercialization of MDT-637 and an earlier stage asthma/
chronic obstructive pulmonary disease (COPD) candidate.
This deal is in line with Teva's strategy of strengthening its
position in the respiratory therapeutic area, which is one of the
company's core specialty franchises. Key marketed products in the
company's respiratory franchise include ProAir, Qvar and Qnasl
Nasal Aerosol. However, competition is strong in the respiratory
market given the presence of companies like
) among others. Sales from Teva's respiratory products franchise
declined 2.5% in 2012 to $856 million.
Teva currently carries a Zacks Rank #3 (Hold). The company is
going through a tough transition period given fewer large generic
opportunities, potential new competition for branded products
(especially Copaxone) and a higher cost base.
However, we are encouraged by Teva's plans to improve its
position. Teva said that it intends to accelerate growth
platforms, protect and expand core franchises, expand its global
presence, pursue strategic deals and reduce the cost base. We
expect investor focus to remain on the execution of the company's
Companies that currently look well-positioned include
), a Zacks Rank #1 (Strong Buy) stock.
ASTRAZENECA PLC (AZN): Free Stock Analysis
BIOGEN IDEC INC (BIIB): Free Stock Analysis
GLAXOSMITHKLINE (GSK): Free Stock Analysis
TEVA PHARM ADR (TEVA): Free Stock Analysis
To read this article on Zacks.com click here.