Teva Pharmaceuticals' (TEVA - Get Report) announcement on Monday that it will voluntarily suspend sales, marketing and distribution of its Zecuity migraine relief product will likely have little impact on the company, analysts said.
"Zecuity is a very small product for Teva with minimal sales contribution to the overall company," said Evercore ISI analyst Umer Raffat in an email, the idea being that Zecuity was to have a presence in the headache community "ahead of the far more important anti-CGRP (calcitonin gene-related peptide) launch in a couple of years."
Zecuity, which became available in the U.S. in September, is a single-use, disposable patch system used for the acute treatment of migraine headaches.
On Monday, Teva said it is suspending marketing of the product after receiving reports of adverse skin reactions such as burns and scars. Teva has also initiated a pharmacy-level recall of Zecuity.
The Jerusalem-based company said it is working with the U.S. Food and Drug Administration to further analyze the reports and investigate the root cause.
Teva did not break out revenue numbers for Zecuity when the company released its first quarter earnings report last month.
Zecuity is among the core central nervous system (CNS) medicines in Teva's specialty medicines segment. In the first quarter, the specialty medicines unit had total revenue of $2.15 billion, up from $1.96 billion in the year-ago period. CNS medicines accounted for $1.32 billion of revenue. Of that number, $1 billion came from Copaxone, $113 million from Azilect and $103 million from Nuvigil, according to the earnings release. That means the rest of the CNS products contributed $101 million of revenue during the first quarter.
Generic medicines brought in revenue of $2.17 billion, down from $2.62 billion in the first quarter of last year. OTC revenues were $288 million, up from $213 million and other revenues totaled $200 million, up from $192 million.
In afternoon trading on Tuesday, Teva's American depository receipts were changing hands at $52.94, down 0.5%.
On June 11, Dr. Reddy's Laboratories (RDY - Get Report) said it has signed an agreement with Teva and an affiliate of Allergan to buy a portfolio of eight Abbreviated New Drug Applications (ANDAs) in the U.S. for $350 million in cash at closing.
Teva expects to complete its $40.5 billion acquisition of Allergan Generics this month.
When the deal closes, Teva will still have around half of operating profits from its branded products, according to Evercore ISI's Raffat.