Teva Pharmaceutical Industries Ltd.
) reported that it has launched its generic version of
) cholesterol management treatment, Niaspan (niacin
extended-release) tablets (500, 750, and 1000 mg) in the U.S.
The launch of generic Niaspan is one of the most important
generic product launches at Teva this year and should boost the
performance of the generics business. With Teva being the first
to file, the company will enjoy 180 days of marketing
exclusivity. As per IMS data, as of Jun 30, 2013, Niaspan annual
sales were approximately $1.12 billion in the U.S.
We note that the performance of Teva's U.S. generics business
was soft in the second quarter of 2013 with revenues declining 8%
to $970 million. Lower sales of generic Lexapro, no royalties on
generic Lipitor and lower sales of generic Avapro led to the
decline in revenues. However, Teva expects the generics business
to pick up in the second half of the year. 20-25 generic product
launches are slated for 2013.
Teva currently carries a Zacks Rank #3 (Hold). The company is
going through a tough transition period given fewer large generic
opportunities, potential new competition for branded products
(especially Copaxone) and a higher cost base.
However, we are encouraged by Teva's plans to improve its
position. Teva said that it intends to accelerate growth
platforms, protect and expand core franchises, expand its global
presence, pursue strategic deals and reduce the cost base. We
expect investor focus to remain on the execution of the company's
At present, companies like
) look well-positioned with both being Zacks Rank #2 (Buy)
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