"In
our opinion, this will have a greater impact on Perrigo than Teva
Pharmaceutical Industries Ltd.," says Clal Finance analyst Jonathan
Kreizman. "The characteristics of Lemtrada are similar to those of Tysabri, because both drugs target more severe cases than Copaxone. Lemtrada and Tysabri are more effective than Copaxone, but have lower safety profiles."
Kreizman
believes that Lemtrada's chances of FDA approval have been weakened.
"This is very good news for Perrigo, because it leaves Tysabri with few
rivals in its segment. This reduces the risk profile of the Elan
acquisition by Perrigo."
In
late July, Perrigo announced the acquisition of Elan for $8.6 billion.
Elan's main asset is income from Tysabri, which sold its rights to the
drug to Biogen Idec Inc. (Nasdaq: BIIB) in exchange for 12% royalties on
sales. Tysabri had $1.6 billion in sales in 2012.
Click here to read more