Generic competition will soon eat away sales of its workhorse multiple sclerosis drug Copaxone (Glatiramer Acetate)


Regulators in Europe refused to give a favorable review to laquinimod, a potential successor treatment to Copaxone, which faces generic competition in May. The EMA today said it was concerned about elevated risk of cancers as well as a possible risk to unborn babies from the use of laquinimod, Bloomberg reported. The drug has had trouble before. In 2011, Teva decided not to seek U.S. approval for the candidate, given disappointing trial results at the time. In a statement today, the drugmaker said it remained committed to the drug and would ask the EMA to reexamine its position. But it is another setback for the drugmaker, which is in the midst of trying to cut $2.5 billion in costs--and 5,000 jobs--from its expense sheet. The turmoil caused by that effort last year cost CEO Jeremy Levin his job. On Jan. 9, the company named board member Erez Vigodman to the CEO spot. Teva has acknowledged that it can expect at least a $550 million hit from Copaxone generics this year. U.S.-based generics maker Mylan ($MYL) has said its copy of Copaxone can be available for sale when Copaxone's patent rolls off.
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