Recently, Teva (TEVA) launched a generic version of an oral contraceptive drug. The new drug is a generic version of Minastrin. The company’s generic drugs continue to build revenue year over year.

Teva has a chance to profit well with its generic version of the drug. Minastrin from Allergan generates a good amount of revenue.

Generic Version Minastrin

With the launch of the generic version of the drug, Minastrin, Teva increased its portfolio of contraceptive drugs. It brings the total amount of generic contraceptive drugs in its arsenal to over 50.

That puts the company as one of the main leaders in this space. Around 50% of the prescriptions in the United States for contraception come from Teva.

That is only the beginning for the big pharmaceutical giant. In the United States alone, it boasts at least 600 generic products. In other words, one in six prescriptions written in the U.S. for a generic product comes from Teva.

Competitor

Minastrin is sold by a big pharmaceutical company by the name of Allergan (AGN). The drug is a contraceptive drug that combines two hormones. It combines progestin and estrogen. Both these hormones make it difficult for a women to get pregnant.

This drug has done well for Allergan. That is because Allergan reported the product’s revenue in its most recent earnings report. In the fourth quarter of 2016 alone, Minastrin earned $78.4 million.

Total sales for the drug in all of 2016 reached around $361 million. Even if Teva reaches half that amount in sales, it will be a nice boost for the company. It seems as though it is in good shape when it comes to this new generic drug. The problem is that it is not always so easy. With the generic version of Minastrin going against the original it will have a tough uphill battle.

That is especially true considering the amount of side effects the generic version has. Such side effects include: increased cardiovascular risk for smokers, danger for those with hypertension, and also trouble for those who are pregnant. These side effects may inhibit sales in one way or another.

Earnings

Teva did very well on its most recent earnings report. It reported fourth-quarter earnings that beat on both the top and bottom line of estimates. The company reported that it had earned $1.38 per share.

This was slightly above the expectation that it would earn $1.35. Revenue also came in higher than expectations. Revenue for the quarter came in at $6.5 billion. Again, this was higher than the expected revenue of $6.24 billion.

The revenue came in higher than expectations because of a deal made by Teva. Last year Teva paid $40.5 billion to acquire the Actavis generic drug business from Allergan. The revenue for Teva was higher because of the Actavis revenue included in the most recent quarter. At least $630 million in revenue was included into Teva’s earnings.

What Binary Options Traders Should Watch For

Traders should watch a few things.

The first of which is to monitor how well the generic version of Minastrin does in the market. Being that Teva is a huge leader in the contraception space this will be very important.

The second item would be Allergan’s Minastrin sales. It may have closely similar side effects to its generic counterpart, but it will take time for the generic version to catch up. In the meantime, doctors have been prescribing the original version.

The final item that traders should keep an eye on would be the continuation of growth in earnings. Teva did well in the most recent quarter. In order for this trend to continue, Teva must keep up as the leader in the generic space. The generic version of Minastrin being launched is the very first step in doing so.