France's AXA Acquires Stake in Israel's Teva

According to Israeli media sources, leading French financial services group AXA has acquired a 5.6% stake in Israeli generics maker Teva. The move has come as a surprise to some observers, as the purchase is likely to be expensive, and comes at a time of growing difficulties in the world generics market.

Teva has already claimed that 2005 will be a challenging year, and price pressures from competitors have reportedly been building since early 2004. Although sales have continued to rise, India-based rivals are aggressively submitting US FDA filings, which rose to a record 475 in 2003. Observers estimate that Indian generics producers account for 25% of all generics applications, and could file 200 submissions in this year alone.

Further, observers claim that Teva is vulnerable to unresolved legal issues relating to its epilepsy treatment gabapentin and pain drug oxycodone. Patients are also understood to be shifting to newer treatments, and thus away from several generic drugs on which Teva holds patents.