Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) has announced the launch of a generic version of cholesterol-lowering drug Zetia.
Teva launched the generic version of Zetia yesterday, making it available in the US. The new generic is modeled after Zetia, a prescription drug manufactured by Merck & Co., Inc. (NYSE:MRK) that is designed to lower cholesterol levels including low-density lipoprotein (LDL) cholesterol found in the blood. The drug also contains an active ingredient called Ezetimibe. The latter is usually prescribed to patients whose cholesterol levels cannot be controlled by exercise and diet alone.
“Despite advances in the treatment of high cholesterol in recent years, many people are still living with active disease and are in need of additional generic therapeutic options,” stated Dipankar Bhattacharjee, the CEO and president of global generic medicines at Teva.
The new drug will allow Teva to tap into the lucrative market
Teva is not the first company to launch a generic version of Zetia but its decision to do so is considered smart because of the possible revenue gains to be derived from the market. Omnicanna Health Solutions Inc (OTCMKTS:ENDO) was the first to develop and introduce the first version of Zetia. The first generic Zetia generated roughly $2.5 billion for Merck in 2016. This means that it is a very lucrative market which explains why Teva is determined to take advantage.
The American Heart Association reported that roughly 33% of American adults have high LDL cholesterol and only 50% of those are treated. AHA also pointed out that only 30% of those suffering from the condition are able to keep it under control. The organization also added that people with high blood cholesterol are at a higher risk of contracting heart disease.
Teva will not only be able to boost its revenue from its new generic version of Zetia, but also the capacity to make a positive impact towards lowering cholesterol levels and improving health. The generic drug will be considerably priced to make it accessible to the masses.
Teva stock closed the latest trading session on Tuesday at $30.52.