On Thursday, the FDA approved the Teva EpiPen, a move that marks a significant blow to the company’s rival, Mylan N.V.
To no surprise, the market is still riding this high on Friday, allowing the stock to enter the green zone.
Teva EpiPen Approved, and the Stock is Up
Even for people that are indifferent towards the pharmaceuticals market, the importance of this announcement is pretty clear.
First, and probably the most important takeaway, EpiPens are life-saving devices, used to treat severe allergic reactions. It’s about time the EpiPen got a do-over, especially after the 2016 Mylan EpiPen scandal, where the company hiked up prices and angered the market.
Second, it gives Teva a competitive edge up against Mylan. It also means that Teva is a leader in this industry. Why? Well, because this is, as the FDA said, the first official generic version of the life-saving treatment.
Third, this now means Teva Pharmaceutical is in the FDA’s good books, which isn’t necessarily easy to do. Even Scott Gottlieb, FDA Commissioner, said that the approval of the Teva EpiPen means those suffering from severe allergies will “have a lower-cost option.”
Not only that, but now these patients have “another approved product to help protect against potential drug shortages.”
Fourth, it means Trump approves of Teva, which might be a good thing to some. Plus, even if you don’t like Trump, you don’t want him to dislike you. With the Trump Administration giving the green light to the Teva EpiPen, it’s safe to say he doesn’t disagree with the company’s methods.
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The Teva Stock (NYSE:TEVA)
Though it’s not a massive increase, and it looks as if it might drop off soon, green is green.
At press time, Teva is trading at $24.12, which puts the stock up 0.04%.
The Takeaway
What do you think about the FDA approving the Teva Pharmaceutical’s EpiPen? Do you feel bad for Mylan, or are you happy that these life-saving devices will be more economical?
Featured Image: flickr
