The recent acquisition of Ivax by Teva as put a question mark over the future of the product supply agreement by domestic Pharma major Cipla and Biotech major Biocon with Ivax. Cipla has as agreement with Ivax for supplying over 20 generic products while the Bangalore based Biocon is supplying statin whereas Teva itself is strong in many of these products.
The termination of the agreement may however not affect Cipla too as it is well diversified across products and geographies. However, Biocon, which has limited products, could get hit badly in the event. After acquiring Ivax, Teva would become the number 1 generic company in the world with more than $6.6bn in sales, closely followed by Sandoz though there is a large gap between the two.