Teva Moves into Biologics

Generic Giant, Israel-based, Teva Pharmaceuticals (NASDAQ:TEVA) buys for $ 400 million in cash, CoGenesys, a 2006 spin off of Maryland-based Human Genome Sciences. CoGenesys’s pipeline of biologic drugs includes treatments for cardiovascular disease, cancer and autoimmune disorders.

Teva announced in 2007 his strategic decision to move into biologics. The obvious opportunity is to build an early leader position in Bio-Similars. Europe has already approved Novartis version of J&J’s Eprex ( marketed in the US by Amgen as Epogen). Teva, which has a market cap in excess of $ 30 billion, has clearly the financial resources to step up its investments in follow on biologics and possibly move into more innovative bio-pharmaceuticals. Copaxone, Teva Multiple Sclerosis drug, may actually benefit from CoGenesys albumin technology inorder to improve and prolong its activity.