Teva plunges after announcement that Ajovy (migraine) can be covered in US

 

Very negative news for Israel-based pharmaceutical group Teva. Express Scripts Holding, the main healthcare insurer in the rich US market, has announced it will cover Eli Lilly’s and Amgen’s new CGRP migraine therapies, but not Ajovy, Teva’s equivalent to them. Teva’s shares have soon negatively reacted by declining over 5%. The three drugs are marketed at $575 per month and Express has announced that they are identical, but it has decided not to cover Ajovy based on discounts granted by the three drugmakers.

Ajovy was acquired in 2014 by Labrys Biologics and Teva strongly believes in its potential, since it can generate sales up to $2bn.

(Source: Reuters)