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Generics and Biosimilar Business Is Major Growth Driver for Teva

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Biosimilar business trends

On November 29, Celltrion issued a press release announcing FDA approval of Truxima, a biosimilar version of Roche Holdings’ (RHHBY) Rituxan in three indications. On October 6, 2016, Teva Pharmaceutical (TEVA) issued a press release announcing a partnership with Celltrion for the commercialization of biosimilar versions of Rituxan and Herceptin in the US and Canada.

On November 1, as per the joint stipulation of the voluntary dismissal document, Teva Pharmaceutical and Celltrion managed to settle patent infringement litigation with Biogen (BIIB) and Genentech, a subsidiary of Roche Holdings, related to Truxima.

The above diagram highlights the revenue growth trajectory of Teva Pharmaceutical in the past year across geographies.

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Generics business growth drivers

Teva Pharmaceutical aims to launch the generic version of EpiPen in the US in the fourth quarter. According to Teva Pharmaceutical’s third-quarter earnings conference call, the company is also focused on increasing its manufacturing capabilities for EpiPen to help reduce shortages in the US market.

According to Teva Pharmaceutical’s third-quarter earnings investor presentation, the company has the largest generic drug portfolio in the world. As per the third quarter earnings investor presentation, Teva Pharmaceutical has a 14% share of the generics market in the US and a 24% share of the generics market in Canada. According to the third-quarter earnings investor presentation, new product launches and price stabilization are expected to boost the company’s generics business revenues both in the US and Canadian market.

According to Teva Pharmaceutical’s third-quarter earnings conference call, Teva Pharmaceuticals is expected to report revenues of $9.0 billion for fiscal 2018 from the sale of products in its Generics and Speciality portfolios in the US and Canada.

According to Teva Pharmaceutical’s third-quarter earnings conference call, the company’s ANDA business ranks fourth in terms of global generic drug distribution. According to Teva Pharmaceutical’s third-quarter earnings investor presentation, the company is also the leading secondary supplier of generic pharmaceuticals in the US market.

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