Replies to post #198874 on Biotech Values

[DewDiligence]

EGRX—With regard to Bendeka, will TEVA PUSH the switch? Are they contractually obligated to make the switch? Does the net economic numbers for TEVA compel them to switch? Given that they make 100% on current product and only 80% net on Bendeka, wondering why they will be aggressive to switch?

TEVA is not contractually obligated to force a “hard switch” from regular Treanda to Bendeka; however, if TEVA does not put sufficient weight behind Bendeka, EGRX has the contractual right to take Bendeka back and cancel the partnership. This provision alone should ensure that TEVA does not do anything to impede the commercial uptake of Bendeka.

Moreover, Bendeka is simply a better product than regular Treanda and it’s the only way for TEVA to retain a premium-priced branded product once EGRX launches its “big bag” generic Treanda on 5/1/16.