Teva Pharmaceutical Industries Limited (TEVA): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report


Teva reported third quarter EPADS of $1.32, up 4% y-o-y and well above the Zacks Consensus Estimate of $1.23. Revenues remained flat at $5.058 billion, slightly below the Zacks Consensus Estimate of $5.100 billion. Teva now expects EPADS of $5.00 - $5.10 on revenues of $20 billion - $20.3 billion. 2014 has been a challenging year for Teva, which is going through a transition period. While Teva's new strategy looks good, execution remains the key. Headwinds include new competition for branded products and fewer generic product launches. Meanwhile, we are encouraged by Teva's efforts to delay the entry of generic Copaxone. The Copaxone appeal hearing in the Supreme Court took place on Oct 15 with a ruling expected late this year/first quarter of 2015. We expect investor focus to remain on the generic Copaxone situation and the execution of the company's new strategy.


Headquartered in Petach Tikva, Israel, Teva Pharmaceutical Industries Limited is a global pharmaceutical company that develops, manufactures, and markets both branded and generic drugs, as well as active pharmaceutical ingredients (APIs) in North America, Europe, Latin America, Asia, and Israel. Teva's generic product portfolio includes tablets, capsules, ointments, creams, liquids, injectables, and inhalants. The company's main branded products include Copaxone (multiple sclerosis) and Azilect (Parkinson's disease). Besides this, Teva's branded product portfolio consists of respiratory products like ProAir, a short-acting beta-agonist for the treatment of bronchial spasms and exercise-induced bronchospasm, and Qvar, an inhaled corticosteroid for long-term control of chronic bronchial asthma. Moreover, the company has several candidates in its pipeline, which are in different stages of clinical development for the treatment of multiple sclerosis (MS) and asthma.

In Dec 2008, Teva acquired Barr Pharmaceuticals, a U.S.-based multinational generic pharmaceutical company with operations mainly in the U.S. and Europe, for approximately $4.6 billion in cash and 69 million American Depository Shares (ADS). This acquisition boosted Teva's product portfolio which now includes several generic pharmaceutical products as well as women's health products. The combined company also has greater resources and expertise in biogenerics. The Barr acquisition has enhanced Teva's leadership position in the U.S. and allowed it to expand its presence in Europe.

In Oct 2011, Teva acquired Cephalon, Inc. for $6.8 billion. The Cephalon deal is in line with Teva's long-term strategy of expanding and strengthening its branded and specialty pharma business.

Teva has been working on strengthening its position in Europe through its acquisition of Germany's second largest generics producer, ratiopharm. This deal has helped Teva strengthen its position in key European markets, especially Germany, the second largest generic market in the world. Teva should also gain a strong foothold in rapidly growing generic markets like Spain, Italy and France.

Teva reported total revenues of $20.3 billion in 2013, flat from the year-ago period.

2013 Geographical Mix 2013 Revenue Mix

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: MS , ADS , TEVA

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