It's hotting up...

Teva Pharmaceuticals, an Israeli-based company that has had an established presence in the United States since 30 years, is both the world’s leading generics manufacturer and a Top 10 pharma (IMS Health , Sep 2013). However, pushed by its leading-sales MS therapy, Copaxone, coming off-patent, and held back by the lower profit margins in generics, the company has now decided to aggressively pursue opportunities in branded specialty medicines.

Overnight, Teva released its quarterly results, with profits beating analysts’ estimates. In the Earnings Conference Call, CEO Erez Vigodman, who took the helm in February this year, provided details of an ordered strategic review of Teva’s core specialty therapeutic areas. Following the trend of other leading pharmas, a decision has been made to refine focus on just two core areas. As a result, non-core pipeline assets in oncology, immunology, gastroenterology and womens’ health are to be divested or deprioritised. The two core therapeutic areas identified in which Teva says it is committed to achieving global leadership, are CNS and Respiratory. CNS includes MS, neurodegenerative diseases and pain.

Teva already has a substantial pipeline in both therapeutic areas but says it will continue to evaluate opportunities for commercially-oriented activities and collaborations. A new Corporate Development, Strategy and Innovation Group was announced in June, which is tasked with focusing on business innovation and competitive intelligence to uncover emerging scientific and technological trends.

Abuse-deterrent opioids feature strongly in Teva’s pain pipeline. An abuse-deterrent hydrocodone ER product is currently at registration stage and there are two further unidentified abuse-deterrent products at Phase 1. Teva had also licensed QRX’s MoxDuo oxycodone product (for Israel only) but obviously that agreement will no longer proceed. In addition to chronic pain therapies, Teva also has a product at Phase 2 for episodic and chronic migraine pain and two topical therapies at Phase 2 – one for osteoarthritis and the other for neuropathic pain. Teva currently markets products including a generic fentanyl patch, Actiq fentanyl “lollipops” for breakthrough cancer pain and was due to launch this year the Zecuity sumatriptan iontophoretic transdermal patch for the treatment of migraine, which it acquired earlier this year for $144 million.

What might all of this mean for Phosphagenics? Those of a pessimistic frame of mind will probably interpret this as evidence that POH’s pain products are doomed to failure. However, my interpretation is that competitive tension has just been ratcheted up a notch. Teva will be keeping a very close eye on POH and with its desire to be world leader in CNS, established interest in transdermal and topical therapies and preference for innovative technology that provides “patient-centric” solutions, could well be one of the “interested parties” with which POH has been engaging. If not, under-the-pump pain specialist Endo has yet another reason to defend its territory and pharma giant, Pfizer, which has just decided not to proceed with Remoxy abuse-deterrent oxycodone, will need to look for alternative jewels for its crown if it wishes to continue to claim the mantle of “Pain King”.


http://www.ir.tevapharm.com/phoenix.zhtml?c=73925&p=irol-eventDetails&EventId=5170819

http://finance.yahoo.com/news/teva-announces-results-strategic-review-123000881.html

http://www.tevapharm.com/Media/News/Pages/2014/1936330.aspx