Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and India's Dr. Reddy Laboratories Ltd. (BSE: 500124; NYSE: RDY) have obtained US Food and Drug Administration (FDA) approval for their generic versions of schizophrenia drug Zyprexa, made by Eli Lilly & Co. Inc. (NYSE: LLY).
According to IMS Health, brand Zyprexa had $5.7 billion in annual sales in the US in 2010. Zyprexa can cost up to $500 a month; the generic versions could cut the cost by 80%.
Zyprexa is one of a new class of treatments for schizophrenia that effect dopamine levels in the brain to influence behavior, mood and movement. The drugs came into widespread use in the 1990s, replacing earlier treatments because they were thought to be less likely to cause muscle tremors, spasms and other side effects. However, Zyprexa is associated with its own side effects, including weight gain, high blood sugar levels, and drowsiness.
Teva's share price rose 0.9% on Nasdaq yesterday to $39.53, giving a market cap of $35.2 billion, and rose 2.1% in early trading on the TASE today to NIS 144.40.
Published by Globes [online], Israel business news - www.globes-online.com - on October 25, 2011
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