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Wyeth to cut costs as Teva ships generic Protonix

http://www.reuters.com/article/ousiv/idUSN2429276420071224?sp=true

BOSTON (Reuters) - Wyeth (WYE.N: Quote, Profile, Research) said on Monday it expects to revise its business plan and initiate cost cuts after Teva Pharmaceuticals Industries Ltd (TEVA.O: Quote, Profile, Research)TEVA.TA abruptly launched a generic rival to Wyeth's anti-acid drug Protonix.

Wyeth, whose shares were off 4 percent in morning trade on the New York Stock Exchange, said it plans to sue the Israel-based company for lost profits and damages, claiming Teva's product infringes a Wyeth patent. Wyeth said it expects a trial to begin in the second half of next year.

Wyeth executives said on a conference call that Teva, the world's largest generic drugmaker, has agreed to cease shipments of its drug for 30 days while the two companies try to negotiate a settlement. Wyeth said previous talks have been unsuccessful.

In the meantime, Wyeth said it has begun examining every aspect of the company's business to cut costs to offset the impact of a generic launch of Protonix, which generated sales of about $1.4 billion in the first nine months of the year.

"We will look at every area of investing and spending," Bernard Poussot, Wyeth chief operating officer, told analysts on a conference call.

That includes sales and marketing, research and development and manufacturing, he said. In addition, the company will consider entering into partnerships or alliances with other drug companies, he said.

The news comes on the same day Wyeth announced that the U.S. Food and Drug Administration declined for a second time to approve its experimental drug for the prevention of post-menopausal osteoporosis until certain conditions are met.

The drug, bazedoxifene, is a selective estrogen receptor modulator. The FDA previously asked the company for more information, but Wyeth said the agency was not fully satisfied with its response.

"The FDA has requested further analyses and discussion concerning the incidence of stroke and venous thrombotic events," the company said in a statement.

Wyeth said the FDA has not asked for new clinical trials.

Wyeth shares were down $1.88 to $44.98. Teva's shares rose 3.6 percent in afternoon trading in Tel Aviv and climbed 3.7 percent to $46.86 on Nasdaq.