The US Food and Drug Administration (FDA) reproductive health advisory panel last week unanimously voted to recommend approval for marketing of teh ellaOne five-day after contraceptive pill developed by HRA Pharma Inc., and marketed by Watson Pharmaceuticals Inc. (NYSE: WPI). The panel found that the pill successfully reduces the chance of pregnancy up to five days after sex, and that it is safe for use. The FDA is due to decide on the pill in mid-July.
EllaOne could add competition to Teva Pharmaceutical Industries Ltd's (Nasdaq: TEVA; TASE: TEVA) post-coital emergency contraceptive, Plan B, which can be taken up to three days after sex. Plan B reportedly had $125 million in US sales in 2009. EllaOne will be a prescription drug, whereas Plan B is a non-prescription drug.
However, since Watson and other companies also market a generic version of Plan B, EllaOne should not have a material impact on Teva's total sales, which currently amount to $16 billion a year.
Teva's share price fell 1.9% on Nasdaq on Friday to $53.21, and fell 1.2% by mid-afternoon on the TASE to NIS 203.60. Teva's share price has fallen 17.5% over the past three months.
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2010
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