FDA approves generic herpes drug

NEW YORK (CNNMoney.com) -- Teva Pharmaceuticals, the top-selling generic drugmaker in the world, said the FDA approved its generic version of Novartis' genital herpes drug Famvir.

But Novartis will still have its day in court.

Jerusalem-based Teva (up $0.71 to $41.56, Charts) said the Food and Drug Administration granted it 180-day exclusivity to produce a low-cost version of Novartis' (up $0.16 to $52.72, Charts) Famvir.

After the period of exclusivity ends, Famvir is fair game for other generic drugmakers, like Mylan Laboratories (up $0.12 to $15.14, Charts) and Barr Laboratories (up $0.16 to $52.22, Charts) of the U.S. and Ranbaxy Pharmaceuticals (down $0.18 to $8.48, Charts) and Dr. Reddy's Laboratories of India.

Famvir totaled $200 million in U.S. sales for Novartis during the 12 months ended June 30, 2007, according to Teva. But revenues for brand-name drugs plunge once they're pressured by generic competition.

Teva still faces a legal hurdle before launching its low-cost herpes pill, also known by its generic name, famciclovir. Swiss drugmaker Novartis sued Teva for patent infringement in 2005, and a hearing is scheduled for Sept. 5 in the U.S. District Court in New Jersey. Teva said it won't launch a generic version of Famvir until that hearing is concluded.

Famvir competes with GlaxoSmithKline's (up $0.45 to $52.03, Charts) herpes drug Valtrex.