It was only June when Barr Pharmaceuticals
As my Foolish colleague Brian Orelli noted, Barr gets to market Bayer's authorized generic version without fear of competition for at least 180 days -- probably longer, depending on when an appeal is ruled upon. The deal gives Barr a huge competitive edge over rivals Novartis
The results the generics maker released yesterday underscore how powerful those Yasmin sales are, and reveal one reason why rival Teva Pharmaceuticals
Barr originally expected to launch the generic Yasmin, called Ocella, beginning in July, after the close of the second quarter. This helps explain why it had provided earnings guidance that was below expectations at the end of the first quarter. However, Barr was able to kick off the launch a week or two early, booking some $40 million in sales and an additional $0.09 per share in earnings during that short window.
Yet Barr's strong earnings owed to more than just Yasmin. North American generics sales rose 15% to $340 million, and its proprietary Seasonique contraceptive continued to be well received. International sales also increased, but that was entirely due to currency exchange effects.
Undoubtedly, Teva realizes that getting hold of Barr's assets would give it an immediate leadership position in women's health-care products. Along with gaining entrance to Eastern Europe through Barr's Pliva subsidiary, Teva will have a massive 16% market share in the U.S. generics business, twice as much as its nearest rivals, Mylan
That's a fearsome lineup worthy of the Hall of Fame.
Fool contributor Rich Duprey owns shares of Barr, but does not have a financial position in any of the stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.