Carr Schultz, CEO of Teva (Flash 90, Sivan Farage)
Teva shares are losing ground in New York today after falling by about 4% in Tel Aviv. Last night, after the end of trading on Wall Street, the company received a letter from the FDA requesting further clarification about the trials in the company’s new drug concerning the treatment of schizophrenia patients treated with Risperdal on a daily basis.
Teva has announced that it will respond fully to the FDA’s clarification requests, but this is a move that will delay the continuation of trials of the drug and hence will also delay its launch.
More in-
Teva’s new drug is one of the company’s original drugs that was supposed to fill the gap in original drugs since the Copaxone patent expired.
Teva’s new drug is given by injection infrequently (one or two months according to medical recommendations) and is intended to treat schizophrenia patients treated with Johnson & Johnson’s Risperdal which is in principle given by daily oral means and reported side effects such as drowsiness and so on. Which causes patients not to use the pill frequently, which impairs their ability to cope with the medical condition.
Risperdal’s sales are estimated at almost $ 600 million worldwide, with half of these sales in the United States.
According to the findings of the experiments in Teva’s development as published last year, there is an improvement in the condition of those who took Teva’s medicine so that the onset of injection-injection schizophrenia symptoms was significantly delayed, which can be analyzed as a success of the development.
While Teva’s development should not be a blockbuster (i.e. a drug with sales that change economic realities for the company) but it should certainly be a nice addition to the company’s sales and its basket of source developments. Delay in the launch of the drug, bottom line, is not good news for the company but it is certainly not news that changes reality for it and therefore the reaction of investors is relatively measured.
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