Teva Wins Patent Litigation vs. AstraZeneca in UK - Analyst Blog

By Zacks Equity Research,

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Teva Pharmaceutical Industries Ltd. ( TEVA ) received a favorable ruling from the UK High Court in a patent infringement case related to its generic version of AstraZeneca's ( AZN ) Symbicort (fixed dose combination of formoterol/budesonide).

The Court ruled that the patent (EP 1,085,877) protecting AstraZeneca's Symbicort for the SMART (Single inhaler Maintenance And Reliever Therapy) indication was invalid.

Teva said that the UK High Court also rejected AstraZeneca's patent amendment request for Symbicort. The Court's verdict in favor of Teva has paved the way for the company to launch its own formoterol/budesonide combination product, DuoResp Spiromax, in the UK.

We note that Teva won multiple patent litigation cases against AstraZeneca in the past. Teva had previously revoked two other patents covering AstraZaneca's fixed dose combination of formoterol/budesonide − EP 0,613,371 (asthma) and EP 1,014,993 (chronic obstructive pulmonary disease) before the European Patent Office and the Norwegian court.

Reslizumab Meets Primary Endpoint

Meanwhile, Teva's asthma candidate, reslizumab, has met the primary endpoint in two phase III studies. Reslizumab showed a statistically significant reduction in the frequency of clinical asthma exacerbations in patients with inadequately controlled moderate-to-severe asthma and elevated levels of blood eosinophils. The company intends to file for reslizumab's approval in the first half of 2015, starting with the U.S., followed by the EU and other regions.

Our Take

Given Teva's dependence on its generics business for growth and the rising competition in the generics market, we are concerned about the company's top-line performance. However, the latest court ruling in favor of Teva's generic version of AstraZeneca's Symbicort should boost the company's performance in the EU.

Teva carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the pharmaceutical sector are Allergan Inc. ( AGN ) and Endo International plc ( ENDP ). Both stocks carry a Zacks Rank #1 (Strong Buy).

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TEVA PHARM ADR (TEVA): Free Stock Analysis Report

ASTRAZENECA PLC (AZN): Free Stock Analysis Report

ENDO INTL PLC (ENDP): Free Stock Analysis Report

ALLERGAN INC (AGN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: TEVA , AZN , ENDP , AGN

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