FDA approves EpiPen’s generic developed by Teva, shares soar

FDA yesterday approved the generic to Mylan’s EpiPen, developed by Teva Pharmaceuticals. EpiPen is an epinephrine pre-filled syringe, to be used in case of anaphylactic shock. It is a blockbuster worth $1.5bn. Mylan’s price policy has resulted in price increases of 548% and a strong response by US Administration in the past, which has surely played a significant role in the approval process. In addition to controlling prices, the approval means a solution to availability issues related to EpiPen in US, Canada and the UK. The problem is due to Pfizer, acting as a supplier to Mylan, which is experiencing issues in manufacturing enough product units in the St. Louis (Missouri) plant, operated by the  Meridian Medical Technologies Inc unit (100% Pfizer).  Teva’s shares have soon reacted to the positive news by rising over 7%.