Will Teva Pharmaceutical Industries Ltd (ADR) (TEVA) Rule This Multibillion-Dollar Market?

Sanofi SA (ADR) (NYSE:SNY)‘s Aubagio followed up with an FDA approval last year, but don’t expect such sky-high sales from this drug. The company priced Aubagio cheaper than competitors to undercut more expensive treatments such as Copaxone and Gilenya, but the drug never matched up to the efficacy of more potent rivals. Aubagio does have a safer profile going for it, however, and it could be useful for patients looking to avoid tough side effects. Peak sales estimates vary wildly, from conservative projections of around $350 million annually to more than $1.5 billion. Aubagio could one day hit blockbuster status, but don’t expect the world from Sanofi’s drug.

Biogen’s BG-12 could really set the bar high for oral medications, however. The drug’s still awaiting FDA approval, but BG-12’s efficacy makes this candidate look like a shoo-in to be given the green light. It also lacks many of the problematic side effects that have hurt Gilenya in the past, with a patent that doesn’t expire until 2019. Analysts peg peak sales around $3 billion; expect BG-12 to go toe-to-toe with Gilenya to rule the future of oral MS medications.

A crowded future
The traditional dominance of drugs like Avonex and Copaxone is coming to an end. While those drugs continue to crank out solid sales for Biogen and Teva, respectively, the rise of oral therapies and the surge of competitors into the MS market will put pressure on these tried-and-true staples of the industry. Biogen and Teva should make out fine — the former should only rise in the MS market with BG-12 — but the future of the industry has become a lot more crowded.

The article Which Company Will Rule This Multibillion-Dollar Market? originally appeared on Fool.com and is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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