Licensing In Brief
This article was originally published in Pharmaceutical Approvals Monthly
Executive Summary
Teva/Ivax merger creates pricing flexibility in generics: Teva is prepared to leverage its $7.4 bil. acquisition of Ivax to offer the lowest prices on generic drugs "if need be" to forestall loss of business to competitors, according to Ivax Chairman Phillip Frost. Announced July 25, the deal creates the worldwide generic industry leader, based on combined 2004 sales of $6.1 bil. Post-merger, Teva says it will offer at least 300 products in the U.S. with a pipeline three times larger than that of its nearest competitor. The firm may reconsider its resistance to "authorized" generics following the merger: "We will definitely consider the new situation in the market and might reconsider our policy," Teva CEO Israel Makov said. A D.C. federal appeals court recently upheld FDA's refusal to block NDA holders from licensing or launching authorized generics. Novartis' Sandoz division (including Eon and Hexal) is the second largest generics firm with $5.1 bil. in 2004 sales; Novartis' Eon and Hexal purchases, announced in February and valued at about $8.7 bil. combined, closed in July and June, respectively...