Teva Pharmaceutical Industries (TEVA) is the world’s largest producer of generic drugs by revenue. With 36 manufacturing facilities across the globe, Teva's scale-- 4 to 6 times that of competitors Mylan and Watson Pharmaceuticals-- allowed it produce its drugs more cheaply and consequently price its drugs lower. 60% of the company's sales come from the US and 25% come from Europe. The company earned $13.9 billion in revenue and $2 billion in net income in 2009.
Teva has filed more patent challenges than any other generic pharmaceutical company. Rather than waiting for patents to expire, Teva files challenges which, when successful, allow it to produce the "challenged" drug for 180 days without other generic competition. This strategy, however, comes with the risk of increased exposure to lawsuits by the brand manufacturers.
Based in Israel, the Teva has locations worldwide and employs over 25,000 people. Its products range over all the major therapeutic areas including anti-infective, cardiovascular, oncology, dermatological and anti-inflammatory. Teva USA, the largest domestic subsidiary of the international corporation, markets over 300 generic products, the largest pipeline of any generic manufacturer. Teva’s most significant products are the generic versions of, Zocor (simvastatin), Zoloft (sertraline), Wellbutrin XL (bupropion) and Pravachol (pravastatin). These generics were all produced under 180 days of exclusivity, meaning that Teva reaped very large sales as a result. Teva currently has 162 product registrations awaiting approval from the Food and Drug Administration, with 45 potential candidates for exclusivity.
While Teva is used to dominating the generic industry with its size, it has seen an increase in competition over the past few years. The growth through acquisition of Mylan and Barr Pharmaceuticals (BRL) have begun posing a challenges to the company. Teva has relied on its size to maintain very low costs which allows it to price below its competitors, but their growth undermines this ability.
Over 12% of Teva’s sales come from innovative products such as Copaxone, and so it faces challenges including (ironically) generic competition from other companies on this drug.