Supreme Court + Risky Drug Launch = Billions at Stake

Teva Pharmaceutical Industries Ltd. is trying, not all that successfully, to hold onto its money-making lead MS drug, Copaxone.

May 30, 2014 at 11:35AM

Teva Pharmaceutical (NYSE:TEVA) no stranger to the courts, is on a bit of a losing streak trying to protect its lead multiple sclerosis drug, Copaxone. Because the company focuses on low margin generic drugs, its branded MS drug brings in a roughly fifth of Teva's revenue, but alarmingly nearly half of its profit.

Teva is doing its best to delay generic competition while racing to convert existing Copaxone users to its new 3 times weekly formulation versus the current once a day variant. However, it may be running tight on time as this latest court decision to not impose clinical testing on copycat drugs, went against Teva. Generics could be on the way soon from Momenta (Nasdaq: MNTA), Mylan (Nasdaq: MYL) , and Novartis, but an "at-risk" launch could cost them depending future court decisions.

In this episode of The Motley Fool's health-care show Market Checkup, analysts David Williamson and Michael Douglass discuss the results of this court fight, what it means for investors in both stocks, and why Teva is taking it all the way to the Supreme Court.

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David Williamson owns shares of Novartis. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends Momenta Pharmaceuticals and Teva Pharmaceutical Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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