Cipla stands to reap a benefit from 180-days exclusivities on Lexapro accruing to Teva by virtue of its old manufacturing tie-ups. In fact, Cipla had manufacturing tie-ups with Ivax, which was later acquired by Teva. Teva retained the Cipla as supplier to Ivax units.
Lexapro is US$2.9bn drugs being marketed by Forest Pharmaceuticals. Teva won FTF opportunity on this product, which gives them right for generic version under 180-days market exclusivity.
Cipla as supplier of this product may get up to US$60mn (Rs300 crore) revenue during exclusivity and earn EBIDTA margin up to 40%. Although, this is one-off opportunity for Cipla, it may gain even after exclusivity, when margin may shrink to 15-20%.
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Lexapro is US$2.9bn drugs being marketed by Forest Pharmaceuticals. Teva won FTF opportunity on this product, which gives them right for generic version under 180-days market exclusivity.
Cipla as supplier of this product may get up to US$60mn (Rs300 crore) revenue during exclusivity and earn EBIDTA margin up to 40%. Although, this is one-off opportunity for Cipla, it may gain even after exclusivity, when margin may shrink to 15-20%.
....more info