Replies to post #141649 on Biotech Values

[DewDiligence]

Let me reiterate the passage from Teva’s PR highlighted in #msg-75390703:

In the U.S., in-market sales slightly decreased 1% to $617 million, as a result of the renegotiation of certain distribution services agreements so as to establish a new fee structure, partially offset by price increases.

The word partially is a tip-off that the net effect of these changes was a lower ASP.

Unit volume could have accounted for a little of 17% decline in US Copaxone sales relative to 4Q11, but the bulk of the decline clearly stemmed from pricing.

[DewDiligence]

Quantification of #msg-75394204 re Copaxone: According to today’s CC (near the end of the Q&A), Teva’s modified agreements with US wholesalers cost Teva $120M in 1Q12 Copaxone sales. This $120M figure almost exactly coincides to the difference between the reported 1Q12 sales of $617M and my $740M estimate of 4Q11 sales (#msg-72138967).