On December 15, 2017, Teva Pharmaceuticals (TEVA) announced the exclusive launch of the generic version of 300 mg Viread tablets in the United States. TEVA stock gained nearly 7.6% on the day. The Vanguard FTSE All-World ex-US ETF (VEU) rose by ~0.22% on the day. VEU holds ~0.07% of its total portfolio holdings in TEVA.
Viread is the registered trademark of Gilead Sciences (GILD) for Tenofovir disoproxil fumurate medication, which is used for the treatment of chronic Hepatitis B and HIV (human immunodeficiency virus). Gilead’s patent on Viread expired on December 15, 2017. Viread received FDA (US Food and Drug Administration) approval in 2001. Teva and Gilead entered a patent settlement deal in 2013, which included Gilead’s HIV antivirals Truvada and Atripla as well, in addition to Viread. The generic version launches of the other two drugs are slated for fiscal 2018. Teva had a number of new product launches planned for 2017, as shown in the diagram. However, the company witnessed a delay in certain launches. As a result, it saw lower-than-expected sales contributions from the new launches.
During its recent quarterly results on November 2, 2017, Teva reduced its full fiscal 2017 guidance on its sales contribution from new product launches to $400 million from $500 million.
What is Tenofovir disoproxil fumurate?
Tenofovir disoproxil fumarate tablets are used for the treatment of HIV-1 infection for patients over two years old and the treatment of chronic Hepatitis B in adults and pediatric patients who are 12 years old or older. The medication is indicated for use in combination with other ARV (antiretroviral) drugs. As of October 2017, Viread sales amounted to approximately $762 million in the United States, as per IMS data.