TEVA's CEO abrubtly resigned today.
This could be another key question to ask OGXI on 11/7/13
Will this effect the partnership?
Plus their stock (TEVA) hasn't been doing that great either.
So what's the deal here?
It wouldn't be so bad if it weren't related to the fact that it apparently grew out of a dispute between the CEO and the Board Chairman over the fastest way Teva can cut costs. Levin, the CEO who resigned (or more probably was fired at the Chairman's request according to Bloomberg), wasn't there yet when the Teva deal with OGXI was entered into in 2009. At that time, Teva said 011 would be the centerpiece of its new branded oncology program. There's not much left of that program because Levin deemphasized oncology and said Teva's focus would be elsewhere. So it's not as though OGXI has lost a great backer of 011. But Teva's profits have been plunging and the interim CEO was quoted by Bloomberg as saying Teva will pursue cost reductions "with a sense of urgency."
All that said though, it's very doubtful this will have any effect on SYNERGY, which after all completed enrollment over a year ago and will report data in a few months. The AFFINITY trial is due to complete enrollment around the middle of next year so that's probably safe too. The ENSPIRIT lung cancer trial could be in jeopardy though you'd think Teva would want to see the results on SYNERGY before pulling the plug. Of course, if Teva were to cancel any of the trials it would be in breach of its contract with OGXI but it could probably negotiate a settlement that would cost it less than completing the trial. Teva did announce in its year-end presentation last year that it was terminating several partnership deals but it left the 011 trials in place
The news could raise doubts about whether Teva would be willing or able to put much marketing muscle behind O11 if SYNERGY succeeds. But since Teva would collect most of the profits from 011 you'd think it would have every incentive to sell the product, especially since it's starved for new products that could help it turn around.
It will be very interesting to hear what Cormack has to say about this.
Summer, I got an email from Yahoo with snippets from your post about how Teva has put some effort into marketing 011 already and has started a new P1 trial but I've tried repeatedly to post and Yahoo won't let me include any substance. Am rushed now but will try again later today.
Great Response thank you. The other thing I saw in the article regarding TEVA, they really don't have anything promising in the pipeline and they have dwindling revenue and to me that sounds like a bit of a problem! Also, I would like to know what Cormack has to stay and I am sure most shareholders are itching to hear as well. Should be an interesting conference call.
I hope it affects any future partnering with TEVA. Glad for the funding, but TEVA is one of the reasons that 011 gets no respect (backing from a more respectable pharma would have lent more credibility to the ambiguous Ph II 011 data.) If OGXI doesn't go the rest of the way alone, I hope they at least steer clear of more tie-ups with TEVA.