Boston, MA 04/01/2014 (wallstreetpr) – Investors in Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) were disappointed when the Supreme Court decided to hear an appeal by Teva Pharmaceutical Industries Ltd (ADR)(NYSE:TEVA). The decision will mean that Momenta will have to delay the launch of their own generic version of Copaxone.
The generics war:
Teva Pharmaceuticals has build up a loyal following for Copaxone used in the treatment of multiple sclerosis. Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) was planning its own generic version of this drug and a U.S. court of Appeals had already ruled in Momenta’s favor. The Court of Appeals found that some of the company’s patents were invalid. With this ruling in their favor, companies including Momenta were looking at a launch date in May 2014. The patent would otherwise have expired in September, 2015. The drug is important to Teva as it contributes almost 20% to its revenues but 50% to its profits. Worldwide, Copaxone clocked $4.3 billion in revenues in 2013. So, the stakes are quite high on both the sides.
The Supreme Court ruling and its repercussions:
The decision by the Supreme Court to hear the appeal by Teva may turn out to be a game changer for both Teva as well as Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). In case the Supreme Court does not agree with Teva, it will face competition from May itself. However, in case, the Court overturns the ruling of the appeals court, Teva will get an additional 16 months. These 16 months are very critical as Teva is already developing a newer version of the drug that reduces the dosage levels. In such a scenario, Momenta will find the going tough as it will have a multi pronged battle on its hand. On one hand, it will be competing with a newer and maybe better drug while simultaneously battling for market share.
There are several dimensions to this tangle. They are dependent upon the Supreme Court’s ruling as well as the results of the new product under development. Investors in Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) will have to follow both the dimensions very carefully.
