Biotech Values

[biomaven0]

The Teva/PG deal is somewhat confusing from the PG standpoint. Why would they need Teva's manufacturing or distribution system.

I think two issues.

The first is that Teva, given its massive volume, has to be one of the lowest-cost manufacturers of quality pharmaceuticals.

The second is the potential for Rx-to-OTC switches. These have been very significant in the US already (think various acid blockers and antihistamines, and conceivably a statin to come some day) and there is even more potential in the rest of the world - for example in many European countries some triptans and topical NSAIDs are OTC.

Smart deal I think.

Peter