Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) and a partner have won 15 supply contracts for active pharmaceutical ingredients (APIs) from Allgemeinen Ortskrankenkassen (AOK), Germany's largest health insurance company. The contracts amount to a fifth of the value of the full tender.
Teva noted that, on the basis of IMS data, ex-factory prices of the 15 products totaled €203 million in the 12 months through October 2008. The tender prices are, however, considerably lower than ex-factory prices.
Teva Europe president and CEO Gerard van Odijk said, “We are satisfied with the results of the current tender, in which we balanced considerations of market share without undermining our profitability. The AOK tenders, along with other expected tenders in the coming months, have created an opportunity for Teva to penetrate the German generics market, in which we currently hold less than 1%. We believe that with a broader product portfolio, which we are continuously expanding, and Teva's scale and backward integrated operations, we will become a significant player in the German generics market."
Teva added that there are ongoing legal challenges against the results of the AOK tender and it expects more challenges in the near future. AOK plans to implement the tender in March 2009, or when all legal obstacles have been removed.
In August, AOK published a tender for 64 active ingredients, worth €2.3 billion altogether.
Teva's share fell 0.2% at the opening on Nasdaq today to $43.08. The share fell 1.5% by mid-afternoon on the TASE to NIS 170.40.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2008
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