Teva aims to relieve

Teva Pharmaceutical Industries has set its sights on chronic pain and cancer treatments as the company's next target markets. The first drug under consideration for purchase is Zenvia, which is being developed by Avanir Pharmaceuticals. Avanir is trading at a market cap of $145 million, after its share price skyrocketed 353% since the beginning of the year. This company's shareholders include venture capital funds such as Clarus Ventures (12.5%), ProQuest Investments (19.9%) and Vivo Ventures (11.2%).

Zenvia, which is in the third and decisive stage of clinical trials, is being developed to treat two medical conditions: pseudobulbar affect (involuntary outbursts of crying or laughing in patients suffering from Alzheimer's, ALS, multiple sclerosis, Parkinson's, stroke or head trauma) and diabetic peripheral neuropathy (DPN). DPN, one of the most common complications of diabetes, is a neurological disorder of the limbs, causing both a strong burning sensation and a pins-and-needles sensation in the soles of the feet. About 50% of diabetes patients develop neuropathic pain.

Teva is likely to consider buying other companies, too, such as Durect, which is developing technologies for administering very strong painkillers such as oxycodone, therefore preventing this drug from being abused as a heroin substitute. Durect is trading at a market cap of $200 million. Another buyout candidate is Pain Therapeutics, which is trading at a value of $183 million and owns the development rights to Remoxy, Durect's leading product. Pain Therapeutics is also developing Oxytrex, an innovative chronic pain treatment that does not cause dependency.

Analysts such as Ken Cacciatore of Cowen and Company have posited that Teva could buy competing pain treatment companies such as Endo Pharmaceuticals, trading at a value of $2 billion and King Pharmaceuticals, whose current market cap is $2.2 billion. King has also formed cooperative ventures with companies that specialize in developing pain treatments, such as Pain Therapeutics. A Teva source responded by saying that the company does not comment on conjectures regarding its business dealings.