Following the US FDA approval for Teva's generic version of GSK's Augmentin, the Israeli company is planning to enter the US market very soon, according to an industry analyst here.
With this approval, Teva will be launching its product ahead of Ranbaxy's. All the three generic companies (Geneva, Teva and Ranbaxy) have been fighting GSK on the same grounds.
Geneva, a subsidiary of Novartis, has already launched the generic in July 2002 and has captured 45 per cent market share by offering its product at a 20-25 per cent discount to that of GSK. Ranbaxy believes their confidence levels will get boosted if Teva launches its generic earlier. Teva is the biggest generic company in the US and understands US systems much better than Ranbaxy which in all likelihood will launch its generic in early January 2003, the analyst said.
While there is discomfort that Ranbaxy will play second fiddle to Teva, the analyst believes it is not worth taking the risk. The US market is sufficiently large and as the product is not easy to produce, the second tier of generics players are expected to enter the US market only in mid 2004.
Hence Geneva, Teva and Ranbaxy will form a oligopolistic market not allowing the discounts to exceed 45-50 per cent and share 90 per cent market share between themselves for nearly 6 quarters.