Saturday, January 9, 2010

RLanbaxy

Investors may need a little less than AstraZeneca (NYSE: ÃŽn) sincere heartburn, Nexium, medicine, after the settlement of a patent dispute with the general drug maker Teva Pharmaceutical Industries (Nasdaq: TIFA) yesterday.

AstraZeneca deal represents one hit with Ranbaxy in 2008, giving Ranbaxy and Teva right to make copies of Nexium in the United States in May 2014, when the first patent on the drug expires. In exchange for avoiding the imposition of other patents,AstraZeneca does not have to worry about losing a patent challenge in court.

Dr. Reddy’s Laboratories (NYSE: RDY), Novartis (NYSE: NVS), and lupine also challenged the Nexium patent, but considering the adoption of conciliatory moves by Ranbaxy and Teva, it seems likely that other drug companies will follow suit .

Nexium is very important for AstraZeneca, and to a lesser extent, Merck (NYSE: MRK), who participated in the real estate markets. Pill purple brought in nearly $ 3.7 billion – 15% of the proceedsAstraZeneca – in the first nine months of this year. Sales in the United States may decline slightly because of price reductions, and deals with drugs, with the competition, including copies of its own Prilosec, which is available as the most in dealing with version marketed by Procter & Gamble (NYSE: AFP).

Unfortunately, investors can break out in Nexium again soon. AstraZeneca has a lawsuit over patents on cholesterol drug Crestor next month. Crestor another biggie, ranked third on the list of AstraZeneca Pharmaceuticals higher. Crestor sales only slightly behind that Nexium and Seroquel, and it’s on pace to catch them shortly after, with year over year growth rate of 24% so far this year.

This is the life of the drug company investors. Between the resolutions of the FDA and patent disputes, it is difficult to keep your stomach from churning.

No comments:

Post a Comment