Teva Pharmaceutical Industries Ltd. (TEVA) and Merck (MRK) recently received a positive opinion from the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) for their oral contraceptive pill, NOMAC-E2.

NOMAC-E2 (nomegestrol acetate/17 beta estradiol combination) became a part of Teva’s portfolio through its January 2011 acquisition of Theramex, a Europe-based women’s health business with a presence in several countries. Once approved, Teva will market the oral contraceptive pill in select markets in Europe.

Teva has been working on strengthening its women’s health portfolio. With the Dec 2008 acquisition of Barr, Teva now has a range of women’s health care products in its portfolio consisting primarily of oral contraceptives, intrauterine contraception, hormone therapy treatments for menopause/perimenopause and treatments for endometriosis and labor and delivery.

Key products include Seasonique, LoSeasonique, Plan B, ParaGard and Enjuvia. The women’s health business posted sales of $374 million, an increase of 5% y-o-y, in 2010. Teva is working on growing the women’s health segment into a billion dollar business in the US.

The Theramex acquisition has brought with it a wide range of women’s health (gynecology, osteoporosis, peri-menopause, menopause and contraceptive) products sold in more than 50 countries. Key products sold by Theramex include Orocal (calcium supplement for the treatment of osteoporosis), Colpotrophine (treatment of vaginal infections), Lutenyl (menopause), Monazol (fungal dermatitis), Estreva (estrogen deficiencies), Antadys (dysmenorrheal) and Leeloo Gé (oral contraceptive).

Neutral on Teva

We currently have a Neutral recommendation on Teva, which is supported by a Zacks #3 Rank (short-term Hold rating). While we expect Teva to continue performing well thanks to new product launches, both generic and branded, we remain concerned about the intense competition and pricing pressure in the generics market. Moreover, the Copaxone patent challenge remains a matter of concern.

 
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