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Teva Up on Positive Copaxone Supreme Court Ruling - Analyst Blog

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Teva Pharmaceutical Industries Limited ( TEVA ) received good news on the Copaxone front with the U.S. Supreme Court ruling in the company's favor in its patent infringement lawsuit related to Copaxone 20 mg/ml. Teva had filed a patent infringement lawsuit against Momenta Pharmaceuticals, Inc. ( MNTA )/Sandoz Inc., Novartis' ( NVS ) generic arm, who are looking to launch their generic versions of Copaxone. Teva's shares were up 1.2% on the news.

The court's ruling has sent the case back to the U.S. Court of Appeals for the Federal Circuit for further review. We remind investors that the '808 patent was invalidated by the U.S. Court of Appeals for the Federal Circuit earlier.

We note that Copaxone is approved for the treatment of patients suffering from relapsing forms of multiple sclerosis (MS).

Our Take

The Supreme Court ruling is a major positive for Teva and gives the company more time to convert patients to its 40 mg thrice-weekly (3TW) formulation of Copaxone.

With Copaxone generating approximately $3.1 billion in worldwide sales in the first nine months of 2014, the earlier-than-expected entry of generic versions of Copaxone would be a major setback for the company.

The company reported that at the end of 2014, the 40 mg version accounted for 62% of the Copaxone family. Teva expects to launch its 40 mg 3TW formulation of Copaxone in the EU and additional countries outside Europe during the first quarter of 2015. We note that late last year, Teva had guided towards 2015 Copaxone U.S. sales of $3.5 - $3.7 billion assuming the entry of a couple of AB-rated generics in Sep 2015 and increased competition in the MS market.

Teva currently carries a Zacks Rank #2 (Buy). A better-ranked stock in the health care sector is Impax Laboratories Inc. ( IPXL ) carrying a Zacks Ranks #1 (Strong Buy).

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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.


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

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