Late-Friday, Sep. 14, Teva Pharmaceuticals (NYSE: TEVA) that the U.S. Food and Drug Administration approved its migraine treatment. This is a huge, positive, development for the generics drug manufacturer. As the company continues its transition through absorbing Actavis, it still needs blockbuster products to grow its business.
Ajovy, or fremanezumab is an injectable that prevents migraine headaches. The drug comes in a single-dose syringe. Teva touts the drug as the first and only anti-CGRP treatment with quarterly (675 mg) and monthly (225 mg) dosing. Migraines are a disabling neurological disease that affects over 36 million people in the U.S.
This is according to Stephen Silberstein, M.D. and lead investigator of the Phase III clinical trial program for AJOVY. 40% of those suffering from migraine now have a preventive treatment option.
The drug will be available in around two weeks. The wholesale acquisition cost is $575 per monthly dose and $1,725 per quarterly dose. Assuming all 40% of the 36 million get this drug treatment, this drug could make up the majority of Teva’s annual revenue.
Takeaway
At a forward P/E of 8 times, Teva is still in value territory. With the latest drug approval, the company is ready to retake the $26 yearly high.
