The migraine drug Teva wins the FDA's approval

Teva Pharmaceutical Industries Ltd. obtained regulatory approval from the United States for the sale of a new migraine treatment, a key element of the company's recovery strategy. The stock has increased in trading after hours.

The US drugstore has approved Ajovy, an injection given every few months to relieve migraines in adults, said the Israeli manufacturer in a statement Friday night. According to analysts' estimates compiled by Bloomberg, more than 36 million people in the United States suffer from these debilitating episodes and the drug could generate sales of around $ 500 million by 2022.

The launch of Ajovy could help Teva, the world's largest generic manufacturer, replace declining sales of Copaxone, its aging flagship product. Investors followed the trajectory of the new drug as one of the few growth channels of the indebted pharmaceutical giant. Chief Executive Officer Kare Schultz embarked on a major cost-cutting plan last year and put debt repayment at the top of his agenda, developing shelving designs to increase sales over the next two years.

"Important validation"

With the approval of the drug, Schultz strengthened its credibility with investors, some of whom were skeptical about the company's ability to start selling the drug on time and thus lose more ground than Aimovig's. Amgen Inc., marketed since. May. Teva shares rose 6% after the market closed in New York on Friday.

"Achieving this goal is a very important validation for the credibility of management," Umer Raffat, an analyst at Evercore ISI, wrote in an e-mailed note to clients.

Ajovy will cost as much as Aimovig. "We looked at the value we think we bring to patients and migraine sufferers, and we thought a price of $ 575 per month for Aimovig was appropriate," said Brendan O. Grady, vice president executive and head of Teva's business operations. North America.

"We think this is a huge value for a patient population with a huge need for payers to address this issue and give broad and open access to the entire class," O'Grady said. .

Competition for the multibillion dollar market is expected to continue with the FDA, which is expected to make another decision on the treatment of Eli Lilly & Co.'s migraine next month. "Marketing and Patient Access" will determine the lead as companies offer "similar products," according to a Bloomberg Intelligence rating.