Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA), an international pharmaceutical company, has gained exclusive rights to sell copies of Johnson & Johnson’s drug Risperdal.
Risperdal is a neuroleptic anti-psychotic drug developed by Janssen Pharmaceutica and mainly used for treatment of schizophrenia.
Janssen's patent on Risperdal expired on December 29, 2007, opening the market for cheaper generic versions of the drug from other companies, however, Janssen continued to have exclusive marketing rights until June 29, 2008, as the result of a pediatric extension.
Beginning June 29 Teva is going to sell copies for just 6 months.
The Food and Drug Administration actually acknowledged that it had made wrong decision by denying Teva the right to be the first on the market, the right that allows the company to establish distribution agreements and retain higher profit margins before competition increases and prices fall.