Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
And do you share my feeling that the atmosphere in the USA court is more in the favor of generics?
My feeling is that the court will rule for generics but I'm not a patent lower. Have you any idea how long before we'll know the verdict?
Regards, Idit
Too early to be happy, I bought under $10 and the deal is for less than $8.
TARO - Finally a deal. Hardly what I expected: $7.75 per share in cash, a premium of 27% over the closing price of $6.10
http://phx.corporate-ir.net/phoenix.zhtml?c=114698&p=irol-newsArticle&ID=1004501&highlig....
Sun Pharmaceutical Industries Agrees to Acquire Taro Pharmaceutical Industries in Transaction Valued at $454 Million
First Investment in Israel by Multinational Pharmaceutical Company
Based in India
HAWTHORNE, N.Y.--(BUSINESS WIRE)--May 20, 2007--Taro Pharmaceutical Industries Ltd. ("Taro," the "Company," Pink Sheets: TAROF) and Sun Pharmaceutical Industries Ltd. ("Sun," Reuters: SUN.BO, Bloomberg: SUNP IN, NSE: SUNPHARMA, BSE: 524715) today announced that they have entered into a definitive merger agreement providing for the acquisition of Taro by Sun for $7.75 per share in cash, a premium of 27% over the closing price of $6.10 per share on May 18, 2007, representing a transaction with total equity value of approximately $230 million. Sun will also refinance approximately $224 million in net debt of Taro. The total enterprise value of the transaction is approximately $454 million. Taro and Sun also announced that they have entered into a separate definitive agreement for Sun to provide immediately $45 million of interim equity financing to Taro by acquiring 7.5 million of the Company's ordinary shares.
The agreement with Sun represents the culmination of a process announced by Taro on March 20, 2007, pursuant to which the Company sought to address its significant liquidity issues in a manner that would permit it to remain in existence and continue to grow. The process involved contact with over 20 entities, and extensive due diligence or discussions with several interested parties. With the assistance of the Company's financial advisors, The Blackstone Group, Taro's Board of Directors unanimously determined that the transactions with Sun were clearly preferable to all other available alternatives and are in the best interests of the Company, Taro's shareholders, employees, customers, suppliers and financial institutions.
Merger Agreement
Pursuant to the definitive merger agreement between Taro and Sun, a newly formed Israeli subsidiary of Sun will merge with Taro, and each ordinary share of Taro will be converted into the right to receive $7.75 cash. The merger is subject to a number of terms and conditions, including the approval of Taro's shareholders and regulatory review. Merrill Lynch, Pierce, Fenner & Smith Incorporated provided a fairness opinion to the Board of Directors of Taro in connection with the proposed merger.
Sun will pay all shareholders, including the Levitt and Moros families, who founded the Company, $7.75 for each ordinary share. There will be no consideration paid to Dr. Levitt for the Founders' Shares, which have one-third of the voting power in the Company.
"We are pleased that this transaction meets our objectives of achieving value for our shareholders and establishes Taro as an integral platform for growth within the Sun organization," said Barrie Levitt, M.D., Chairman of Taro. "Sun is a highly respected, multinational pharmaceutical company and is an excellent home for our employees and our products. We very much appreciate the support of our employees, customers and financial institutions during the recent months and believe that the transaction with Sun will put Taro on a course towards financial stability and growth in its worldwide markets," Dr. Levitt stated.
Sun Chairman & Managing Director, Dilip Shanghvi, stated, "We look forward to working with Taro and its employees going forward. This is a good opportunity for Sun and Taro to work together to create increasing value and add a complementary multinational organization to Sun's business. We intend to build on Taro's expertise in dermatology and pediatrics along with specialty and generic pharmaceuticals, and over-the-counter products. With the addition of 170 talented scientists to our team we look forward to an increasing number of product filings of higher complexity."
Established in 1983, listed since 1994 and headquartered in India, Sun Pharmaceutical Industries Ltd. is an international, integrated, specialty pharmaceutical company. It manufactures and markets a large basket of pharmaceutical formulations as branded generics as well as generics in India, the U.S. and several other markets across the world. In India, the company is a leader in the niche therapy areas of psychiatry, neurology, cardiology, diabetology, gastroenterology, and orthopedics. The company has strong skills in product development, process chemistry, and manufacturing of complex active pharmaceutical ingredients, as well as dosage forms. For the year ended March 7, 2007, Sun recorded net sales of Rs. 20,792 million (representing a compounded annual growth rate of 30% over the last 10 years) and net profit of Rs. 7,740 million (compounded annual growth of 30% over the last 10 years). Based on the latest closing price on the Indian stock exchanges, Sun's market cap is USD$5 billion. International sales comprise 43% of revenues. Of this, U.S. generic sales are 23%. Sun has filed 111 ANDAs in the U.S. of which 34 are approved. Over 12% of net sales has been invested in R&D every year for the last 5 years. Sun employs a team of more than 550 scientists who work on complex products for all its geographies.
Litigation Relating to the Transaction
On May 10, 2007 Franklin Advisers, Inc. and Templeton Asset Management Ltd., the beneficial owners of approximately 9% of the Company's ordinary shares, filed an initiating motion in Tel-Aviv District Court seeking certain remedies intended to prevent alleged oppression of minority shareholders. They also filed a motion for the appointment of a special interim manager to review the Company's efforts to identify an appropriate transaction.
On May 19, 2007 Franklin Advisers and Templeton filed a supplemental request with the court indicating that they believed a transaction involving Taro was imminent, and seeking a temporary injunction to prevent the Company from entering into any transaction that might result in oppression of minority shareholders. If the court blocks the interim equity financing with Sun, Taro will not be able to make timely payment of the principal and interest payment due on its 2003 bonds on May 21, 2007. The motion for a temporary injunction is scheduled to be heard on May 21, 2007.
The Company believes that the proceedings initiated by Franklin Advisers and Templeton are without merit and are detrimental to the best interests of shareholders and the Company. The Company intends to contest the action vigorously.
Thomas E. McClary Appointed to Position of Chief Financial Officer
Taro Pharmaceutical Industries Ltd. also reported today that it has appointed Thomas E. McClary, C.P.A., to the position of Group Vice President and Chief Financial Officer, effective immediately. Ron Kolker, Group Vice President and Corporate Controller of Taro, has served as interim Chief Financial Officer of the Company following the departure of the Company's former CFO in October 2006.
Mr. McClary, 53, comes to Taro with more than 27 years of experience in finance and accounting. Prior to joining Taro, he was employed as Vice President of International Finance and Chief Accounting Officer at Ivax Corporation. Mr. McClary held increasingly senior positions at Ivax from 1998 until its acquisition by Teva Pharmaceutical Industries Ltd. in 2006. Prior to Ivax, Mr. McClary held positions that included Corporate Controller and Treasurer of Solopak Pharmaceuticals, Inc., and Senior Manager at Deloitte and Touche.
About Taro and Sun
Snip
Teva ordered to halt generic Lotrel despite FDA's OK
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070520:MTFH79118_2...
Sun May 20, 2007 9:42 AM ET
JERUSALEM, May 20 (Reuters) - Israel-based Teva Pharmaceutical Industries <TEVA.O> <TEVA.TA> said on Sunday it had received final U.S. Food and Drug Administration approval to sell a generic version of Novartis's <NOVN.VX> drug Lotrel.
However Teva, the world's largest generic drugmaker, said in a statement that a U.S. court had then granted an emergency request made by the Swiss-based firm Novartis for Teva to halt shipments of the drug that treats high blood pressure on the grounds of patent infringement.
Annual sales of Lotrel are about $1.5 billion a year, Teva said citing IMS sales data.
Teva said it had received the FDA approval on Friday for its amlodipine besylate/benazepril products in 2.5 mg/10 mg, 5 mg/10 mg, 5 mg/20 mg amd 10 mg/20 mg dosage strengths and it immediately began shipments.
Teva had been awarded 180 days exclusivity for the products.
But on Saturday the United States District Court in New Jersey granted Novartis an emergency request for a temporary order restraining Teva's launch.
A hearing on the matter is scheduled for Monday at 11 am ET (1500 GMT).
CIBC: Elbit Systems will benefit from Tadiran synergy
http://www.globes.co.il/serveen/globes/docview.asp?did=1000213659&fid=942
CIBC has upped its target price for Elbit to $52
Erez Wollberg 20 May 07 16:58
CIBC World Markets has published an update on Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) in which rated it "Sector Performer" with a target price of $52, 44% higher than its previous target price.
"Even with the Elisra integration taking longer than expected, Elbit Systems continues to deliver strong results, growing revenue 20% organically year-on-year and once again delivering solid earnings per share," says CIBC. "Further, with the Tadiran Communications acquisition complete, opportunities for top-line synergy and 2008 upside appear to be expanding."
CIBC adds that Elbit Systems first quarter revenue of $404 million beat the market estimate which predicted $381 million in revenue, and its own estimate of $397 million in revenue. The company's earning per share of $0.45 was in line with CIBC's consensus but $0.02 higher than the market consensus.
Commenting on Elbit Systems' recent acquisition of Tadiran Communications, CIBC says, "We are adjusting estimates to reflect the Tadiran acquisition and positive momentum in multiple geographies and product lines. Our full year expected revenue moves to $1.83 billion from $1.64 billion and earnings per share to $2.22 from $2.00."
As for its increase in target price for Elbit Systems to $52, CIBC says, " Our target price is achieved by applying 18x to our full year 2008 expected earnings per share of $2.88. The target multiple is in the middle of peers' 15x-20x range, and is supported by Elbit Systems' growth, solid cash flows, and upside potential."
Teva optimistic about its pipeline
http://www.globes.co.il/serveen/globes/docview.asp?did=1000213653&fid=942
Teva CFO Dan Suesskind on Merck KGaA’s generics: We didn’t want to buy at yesterday’s price what will cost a lot less tomorrow.
Shiri Habib 20 May 07 16:56
Teva CFO Dan Suesskind says, “The German market is undergoing a transformation and is beginning to interest us. He made the comment at today’s CIBC World Markets Israel conference. Last week, Mylan Laboratories Inc. (NYSE:MYL) outbid Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) for the generic business of Germany’s Merck KGaA (XETRA:MRK).
Commenting on the deal, Suesskind said, “We don’t like to hire 1,000 sales reps to sell a product. We didn’t want to buy at yesterday’s price what will cost a lot less tomorrow.”
Suesskind said the European market as a whole, and not Germany, was undergoing changes. He added that Teva was most interested in the European business of the “acquisition that we almost made”, as he put it, of Merck generics.
In the US, Teva predicts the expiration of patents on drugs with annual sales of $90 billion, including $35 billion in sales for drugs that Teva expects to obtain exclusivity for generic versions. “We have a better pipeline than ever,” said Suesskind. “It is larger than the pipeline of any other company, and at least twice the size of the pipeline of the second largest company.”
Suesskind said that Teva was the 15th largest company on Nasdaq in terms of market cap. “We’re a great cash flow generator.” He said that company’s growth engines included its global deployment, large number of products, and ethical drug programs. He added that Teva’s biogenerics program was the best among the world’s generic drug companies.
Two more insiders (CSO and Sr. VP, Development)were dumping yesterday, guess the pre ASCO hype is over.
It is hard to stay above forty,
trust me on this one, i'm nearly 44:)
And there is also the FDA hurdle to pass, I think MNTA has a better chance than Natco on this one.
I can see the difference, I simply have no knowledge about option trade. Perhaps I will ask Dubi (the board moderator)to teach me:)
Still you have mentioned the fact that Teva's patent on copaxone will expire in the USA on 2014. Will MNTA have their generic version before?
I'm more of a long investor. My dad holds TEVA since the stone age. I bought in TASE at January low so i'm up 20% but will hold.
Today, the Indian company Natco announced its generic version for copaxone (first ever) called Glatimer. i don't think it is a real threat to Teva because there are only 50000 patients in India.
More over, Teva will fight hard to protect its patent rights outside India (perhaps also in India).
Given Imaging cleared for new small-bowel Pillcam product
By Robert Daniel
Last Update: 5:12 AM ET May 17, 2007
TEL AVIV (MarketWatch) -- Given Imaging Ltd., (GIVN) the Yoqneam, Israel, developer of capsule-endoscopy technology, said the U.S. Food and Drug Administration cleared it to market the PillCam SB 2 video capsule and related software. The SB 2 is Given's newest version of a product with which a doctor can view a patient's small bowel. It is the same size as the current model, Given said, but captures nearly twice the mucosal area per image.
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7b49E48D00-6320-47DC-B605-00DFE10B6A86%7d&...
[Market was nor impressed by the additional approval of Evicel for the use in vascular surgery, even though this means that one more indication and it will be approved for use in general hemostasis in surgery. The stock keeps declining since Q1 results.]
Press Release Source: OMRIX Biopharmaceuticals, Inc.
OMRIX Biopharmaceuticals Receives Food and Drug Administration (FDA) Approval for Liquid Fibrin Sealant, Evicel(TM), For Use in Vascular Surgery
Tuesday May 15, 6:00 am ET
NEW YORK--(BUSINESS WIRE)--OMRIX Biopharmaceuticals, Inc. ("OMRIX" or the "Company") (NASDAQ: OMRI - News), a fully-integrated biopharmaceutical company that develops and markets protein-based biosurgery and passive immunotherapy products, announced that on May 9, 2007, the U.S. Food and Drug Administration, or FDA, approved its supplemental Biologics License Application, or sBLA, to market its liquid fibrin sealant, Evicel(TM), in vascular surgery.
"We are expanding the commercialization potential of our hemostasis franchise with Evicel's expanded indication in vascular surgery, stated Robert Taub, President and Chief Executive Officer of OMRIX Biopharmaceuticals, Inc. "We are also one step closer to obtaining a general hemostasis in surgery indication for Evicel, and reaching our stated objective of creating a one-stop-shop for biological hemostats."
Ethicon, Inc., the Company's marketing partner, will actively promote Evicel's vascular indication to surgeons for procedures where a vascular anastomosis or reconstruction is performed. Specifically, in addition to liver surgeons, Evicel will be marketed to peripheral vascular surgeons, cardiac surgeons (specifically for vascular components), plastic surgeons performing microvascular anastomoses, transplant surgeons (when blood vessels are connected), and trauma surgeons performing vascular repair.
The Company believes that the vascular surgery market is approximately twice the size of the market previously addressed with Evicel's indication in liver surgery. The approval of Evicel with a general hemostasis in surgery indication is expected in the first quarter of 2008 (1Q08).
snip
http://biz.yahoo.com/bw/070515/20070515005603.html?.v=1&printer=1
SGEN- Regardless of ASCO hype, The stock is climbing since mid August. I guess it will continue to show strength until ASCO and if thwy will present good data there we'll see the price above $10. (I am long).
Can-Fite to Commence Phase II Clinical Trials to
Investigate the Efficacy of CF101 in the Treatment of Psoriasis
Can-Fite, a biotechnology company traded on the Tel Aviv Stock Exchange, is about to commence a phase II clinical trial with CF101 for the treatment of psoriasis.
This is the third indication for CF101 within Can-Fite's development pipeline, in addition to rheumatoid arthritis and dry eye syndrome, which are already in advanced clinical trial phases. The Company reported today obtaining Ministry of Health and EC approval at several medical centers to commence phase II clinical trials with its leading drug CF101 in patients with psoriasis. This trial will involve about 60 patients, who will be treated for about 12 weeks at 4 medical centers: Rabin (Petach Tikva), Sheba (Ramat Gan), Wolfson (Holon) and Haemek (Afula). The company estimates that the trial will be completed in Q1 2008.
For the full text
http://www.canfite.com/pr/2007-05-16%20CF101-Psoriasis%20Approval-English.pdf
And the trial
http://clinicaltrials.gov/ct/show/NCT00428974?order=2
Clal Biotechnologies TASE IPO
Raising money in TASE is not easy these days, even when you have Teva backing you up. Clal reduced the IPO size from 250M to 200M shekels.
They finally had their first order of €400,000. They will need to get to €10M to justify the current value.
http://www.globes.co.il/serveen/globes/docview.asp?did=1000212048&fid=942
LifeWave gets first order in Germany
LifeWave’s German distributor has promised to buy €19.5 million worth of its bed sore treatment device over four years.
Gali Weinreb 15 May 07 16:28
LifeWave Hi-Tech Medical Devices Ltd. (TASE:LIFE) today announced that the German distributor of its bed sore treatment (BST) device has placed a €400,000 order for the product after the satisfactory completion of the trial period stipulated in the contract between the companies.
Under the MOU, LifeWave’s German distributor has an exclusive license to market BST in Germany, and promised to buy €19.5 million worth of the devices over four years.
The order is important for LifeWave beyond the actual amount involved, because it is tantamount to confirmation of BST’s effectiveness. Although the company has obtained CE Mark certification, this applies only to product safety, not its effectiveness.
And on the other hand
CIBC: Teva will fall 5-10% on Aciphex ruling
Wachovia, American Technology Research: Not acquiring Merck generics is good news for Teva.
Adi Ben-Israel 15 May 07 16:00
The failure of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) to acquire the generics business of Merck KGaA (XETRA:MRK) is turning out to be beneficial for the share. Yesterday, Citigroup raised its target price for Teva from $46 to $54, saying that the failure was a good for Teva’s shareholders.
Today, American Technology Research Inc. said that Teva has become more attractive for investors now that the Merck KGaA cloud has lifted. The research company believes that the $6.7 billion that Mylan Laboratories Inc. (NYSE:MYL) paid for Merck generics was way too much, and was highly risky.
Wachovia says that Teva’s loss in the Merck KGaA tender more than offsets last week’s US court defeat in the patent case over ulcer treatment Aciphex.
CIBC World Markets breaks with the consensus. It believes that the Aciphex defeat will cause Teva’s share to fall 5-10% over the coming weeks, but stress that this is in fact a correction.
http://www.globes.co.il/serveen/globes/docview.asp?did=1000212048&fid=942
Here is another one to make you say Yipee again :
http://www.globes.co.il/serveen/globes/docview.asp?did=1000212281&fid=942
Given Imaging’s PillCam approved by California Medicare
Patients will no longer be required to undergo an upper endoscopy before using the PillCam Small Bowel.
Globes’ correspondent 16 May 07 10:17
Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) reported today that National Heritage Insurance Company (NHIC), California's Medicare Part B carrier, has revised its existing coverage policy for small bowel capsule endoscopy so that patients will no longer be required to undergo an upper endoscopy prior to PillCam SB.
NHIC serves approximately three million Medicare beneficiaries in California.
NIHC's revised policy states that PillCam SB is now considered an appropriate diagnostic following a negative colonoscopy to evaluate patients with suspected, but undiagnosed Crohn's disease. Further policy revisions include the use of PillCam SB in the diagnosis of iron deficiency anemia. These amendments now coincide with policy changes made in 2006 by NHIC of New England.
Given Imaging develops, produces and markets a line of PillCam video capsules for detecting gastrointestinal disorders.
I consider it as a kind of noworries stock with relatively low risk. Bought it for my dad's portfolio in TASE on March. Did well since.
>five companies with more than $2B in annual revenues from generic drugs, investors need a name to describe the major players in this arena.<
Generisaur :)
Press Release Source: Elbit Systems Ltd
http://biz.yahoo.com/prnews/070515/uktu011.html?.v=101&printer=1
Elbit Systems Reports First Quarter 2007 Results
Tuesday May 15, 3:40 am ET
Continued Record Revenues and Backlog of Orders
Revenues Increased by 20.7% Year Over Year to $403.6 Million
Net Profit Increased by 32.0% Year Over Year to $19.1 Million
HAIFA, Israel, May 15 /PRNewswire-FirstCall/ -- Elbit Systems Ltd. (the "Company") (NASDAQ: ESLT - News) the international defense company, today reported its consolidated results for the first quarter ended March 31, 2007.
The Company's backlog of orders as of March 31, 2007 totaled $3,796 million, as compared with $3,786 million as of December 31, 2006. The backlog amount reflects a reduction of approximately $70 million due to a cessation settlement of the Bulgarian helicopter program. Approximately 71% of the backlog relates to orders outside of Israel. Approximately 70% of the Company's backlog as of March 31, 2007 is scheduled to be performed during the upcoming three quarters of 2007 and during 2008.
Consolidated revenues for the first quarter of 2007 increased by 20.7% to $403.6 million, from $334.4 million in the first quarter of 2006.
Gross profit for the first quarter of 2007 increased by 18.3% to $103.5 million (25.7% of revenues), as compared with gross profit of $87.5 million (26.2% of revenues) in the first quarter of 2006. The gross profit margin in the first quarter of 2007 was affected mainly by the impact of the weakening U.S. Dollar against the New Israeli Shekel ("NIS"), which increased the effective labor costs in Israel.
Consolidated net income for the first quarter of 2007 increased by 32.0% to $19.1 million (4.7% of revenues), as compared with $14.5 million (4.3% of revenues) in the first quarter of 2006. Diluted earnings per share for the first quarter of 2007 were $0.45, as compared with $0.35 for the first quarter of 2006.
Operating Cash flow during the first quarter of 2007 reached a record $86.8 million.
The President and CEO of Elbit Systems, Joseph Ackerman, commented: "The continued revenue and profit growth trend we reported is especially impressive due to the organic growth we have recorded in the first quarter of 2007. This growth of approximately 20% is the result of our long-term strategy of expanding our operations to additional target markets and a continued investment in the R&D of advanced technologies and cutting edge products. This strategy enables us to win prestigious and important contracts and to further enhance our network of customers and business partners. It is a long-term strategy that will continue guiding us in the future."
Mr. Ackerman added "After the end of this report period we completed the acquisition of Tadiran Communications' shares and are in the process of realizing the new synergies within the Group's companies. We have also prepared an action plan for Elisra, however, it requires cooperation from the employees and their representatives."
The Board of Directors declared a dividend of $0.16 per share for the first quarter of 2007. The dividend's record date is May 29, 2007, and the dividend will be paid on June 11, 2007, net of taxes and levies, at the rate of 18.15%.
Conference Call
The Company will also be hosting a conference call today, Tuesday, May 15, 2007 at 10:00 am EDT. On the call, management will review and discuss its first quarter 2007 results and will be available to answer questions.
To participate, please call one of the following teleconferencing numbers. Please begin placing your calls at least 10 minutes before the conference call commences. If you are unable to connect using the toll-free numbers, please try the international dial-in number.
US Dial-in Numbers: 1-888-407-2553
UK Dial-in Number: 0-800-917-9141
ISRAEL Dial-in Number: 03-918-0609
INTERNATIONAL Dial-in Number: +972-3-918-0609
at:
10:00 am Eastern Time
7:00 am Pacific Time
3:00 pm UK Time
5:00 pm Israel Time
This call will be broadcast live on Elbit Systems' web-site at http://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends.
Alternatively, for two days following the end of the call, investors will be able to dial a replay number to listen to the call. The dial-in number is either: 1-877-456-0009 (US) 0-800-917-4613 (UK) or +972-3-925-5942 (Israel and International).
About Elbit Systems Ltd.:
Elbit Systems Ltd. is an international defense electronics company engaged in a wide range of defense-related programs throughout the world. The Elbit Systems Group, which includes the company and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence, surveillance and reconnaissance ("C4ISR"), advanced electro-optic and space technologies, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and equipment. The Group also focuses on the upgrading of existing military platforms and developing new technologies for defense and homeland security applications.
STATEMENTS IN THIS PRESS RELEASE WHICH ARE NOT HISTORICAL DATA ARE FORWARD-LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES OR OTHER FACTORS NOT UNDER THE COMPANY'S CONTROL, WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR OTHER EXPECTATIONS IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THOSE DETAILED IN THE COMPANY'S PERIODIC FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
(FINANCIAL TABLES TO FOLLOW)
ELBIT SYSTEMS LTD.
CONSOLIDATED BALANCE SHEETS
(In thousand of US Dollars)
March 31 December 31
2007 2006
Unaudited Audited
Assets
Current Assets:
Cash and short term deposits 155,822 85,400
Trade receivable and others 427,289 465,428
Inventories, net of advances 395,015 371,962
Total current assets 978,126 922,790
Affiliated Companies & other Investments 231,941 235,723
Long-term receivables & others 191,443 189,236
Fixed Assets, net 294,090 294,628
Other assets, net 126,656 128,995
1,822,256 1,771,372
Liabilities and Shareholder's Equity
Current liabilities 827,435 810,885
Long-term liabilities 485,118 460,032
Minority Interest 8,380 6,871
Shareholder's equity 501.323 493,584
1,822,256 1,771,372
ELBIT SYSTEMS LTD.
CONSOLIDATED STATEMENTS OF INCOME
(In thousand of US Dollars, except for per share amounts)
Three Months Ended Year Ended
March 31 December 31
2007 2006 2006
Unaudited Audited
Revenues 403,600 334,370 1,523,243
Cost of revenues 300,062 246,830 1,149,768
Gross Profit 103,538 87,540 373,475
Research and development, net 24,093 21,438 92,232
Marketing and selling 32,371 26,248 111,880
General and administrative 20,318 19,007 77,505
Total operating expenses 76,782 66,693 281,617
Operating income 26,756 20,847 91,858
Financial expenses, net (2,928) (4,241) (21,456)
Other income (expenses), net 113 908 1,814
Income before income taxes 23,941 17,514 72,216
Provisions for income taxes 6,733 4,604 20,694
17,208 12,910 51,522
Equity in net earnings (losses) of
affiliated companies and partnership
3,400 2,267 14,743
Minority rights (1,509) (709) 5,977
Net income 19,099 14,468 72,242
Earnings per share
Basic net earnings per share 0.45 0.35 1.75
Diluted net earnings per share 0.45 0.35 1.72
>MYL is off 12%<
And TEVA moved up across $40, also because Citigroup today raised its target price for Teva from $46 to $54.
Citigroup ups Teva target price to $54
http://www.globes.co.il/serveen/globes/docview.asp?did=1000211793&fid=942
The bank sees not acquiring Merck KGaA’s generic business as good news for Teva.
Adi Ben-Israel 14 May 07 18:54
In a report titled “No News is Good News”, Citigroup today raised its target price for Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) from $46 to $54, 35% above today’s market price, and reiterated its “Buy/high risk” recommendation. Citigroup considers the acquisition of the generic business of Germany’s Merck KGaA (XETRA:MRK) by Mylan as good news for Teva.
Citigroup says, “Teva had been involved in bidding for this asset and Mylan winning removes a significant overhang over Teva’s share prices, as investors worried about possible earnings dilution from buying Merck. We revisit our valuation, and find Teva is trading at 20.4x recurring forward PE, below its five-year average of 22.1x and far below the peak of 31.4x, achieved at end-2005.
“We also update our financial model for Teva, raising 2007 estimated earnings per share by 3% to $2.14 and cutting 2008 estimated earnings per share by 6% to $2.55. We publish our 2009 forecast of $3.00.
Citibank reiterates, “We believe Teva deserves to trade at a 10% premium to US generic drug stocks’ mid-cycle forward PE multiple of 18x.”
I missed this one:
FOR IMMEDIATE RELEASE (PR)
TEVA PROVIDES UPDATE ON GENERIC ACIPHEX® LITIGATION
Jerusalem, Israel, May 11, 2007 – Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA)
announced today that the U.S. District Court for the Southern District of New York has issued a decision in its litigation over the Company's Abbreviated New Drug Application (ANDA) to market its generic version of Eisai’s acid pump inhibitor Aciphex® (Rabeprazole Sodium) Tablets, 20 mg. The Court found Eisai’s U.S. Patent No. 5,045,552 enforceable. Teva intends to appeal this decision immediately as well as the Court's decision granting to Eisai Summary Judgment of validity.
The FDA has already granted final approval for Teva’s Abbreviated New Drug Application (ANDA) for Rabeprazole Sodium elayed-Release Tablets, 20 mg. As one of the first companies to file an ANDA with a Paragraph IV patent certification, Teva has been awarded 180 days marketing exclusivity for this product, which will start on the earlier of the date of first commercial launch or a final court decision.
I read that most analyst agree that MYL payed too much.
TEVA will find some other company to munch sooner or later.
This is what TEVA said:
>While Merck’s generics business would have been a strategic fit for Teva in certain regards the terms of this opportunity did not fully meet our investment criteria.<
Mylan beats Teva for Merck KGaA
Mylan Laboratories paid $6.7 billion for Merck KGaA’s generic business
Gil Shlomo 13 May 07 10:02
Mylan Laboratories Inc. (NYSE: MYL) has acquired the generic business of Germany’s Merck KGaA (XETRA: MRK) for $6.7 billion.
Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), the world’s largest generic pharmaceutical company, was reportedly Mylan’s chief rival in the tender. Mylan is Teva’s main competitor in the US generics market.
Published by Globes [online], Israel business news -
http://www.globes.co.il/serveen/globes/docview.asp?did=1000210935&fid=942
Gamida Cell and NovaThera to collaborate on lung repair
The companies will develop cell therapeutic treatments for lung repair and regeneration.
http://www.globes.co.il/serveen/globes/docview.asp?did=1000210051&fid=942
[I do not follow stem cell company very closely but if I had to point to an Israeli one it would be Gamida Cell.]
Gali Weinreb 9 May 07 13:21
Israeli start-up Gamida Cell Ltd. and NovaThera Ltd. of the UK have signed a cooperation agreement for the development of cell therapeutic treatments for lung repair and regeneration. The companies will pool technology and expertise and work together with the clinical team at Papworth Hospital in Cambridge towards advancing cell therapy approaches for treating lung disease.
Gamida Cell CEO Dr. Yael Margolin said, “This collaboration is in line with our strategy to partner with selected companies focused on developing therapeutics for life threatening illnesses and to help bring these products to market.”
NovaThera, owned by London’s Imperial College, specializes in pioneering applications of biomaterials and stem cell biology for regenerative medicine and tissue engineering to provide innovative therapeutic solutions. Gamida Cell develops therapeutics using proprietary technologies that expand populations of hematopoietic stem/progenitor cells such as those derived from cord blood (not the controversial embryonic stem cells), for the treatment of hematological diseases as well as for tissue regeneration applications.
More Pressure on TARO's management:
Franklin Templeton sues Taro and controlling shareholders
"Taro is being run in a defective and scandalous manner which may lead it to insolvency."
Gitit Pincas 10 May 07
http://www.globes.co.il/serveen/globes/docview.asp?did=1000210802&fid=942
Investors in Taro Pharmaceutical Industries (Nasdaq: TARO.PK) have been anxiously waiting to see who will eventually buy control of the company. Will it be Ofer Brothers' Ofer Hi-Tech fund, or maybe the drug company Perrigo which acquired Agis. Could it be Israel Cold Storage or Yishay Davidi's First Israel Mezzanine Investors Fund (FIMI). Taro has not officially mentioned the identity of the buyers, but it has stated that it is examining business alternatives and apparently the rule of "there's no smoke without fire" applies. The largest shareholder, chairman Dr. Barrie Levitt is due to make a decision soon, as offers were already submitted some time ago to the company.
Taro had intended to inform its shareholders as to who had been decided upon during the "auction" run by the company's financial advisor Blackstone Group. However, Franklin Templeton wishes to halt the process. The large institutional investor has been waging war since October 2006 against Taro's management, including letters and veiled threats. All of these expressed the marked dissatisfaction of the fund's managers with the company's management, and mainly Barrie Levitt.
Franklin Templeton (which holds its stake through Templeton Asset Management and Franklin Advisors) reduced its holdings in recent months from 17% to 9.5%, in exchange for $34 million.
Today, the letters and the threats made it to the Tel Aviv District Court Aviv in the form of a lawsuit filed against Taro, Levitt, Dr. Daniel Moros (deputy chairman), Tal Levitt (daughter of Dr. Levitt, director and VP Taro US), Aaron Levitt (president until 2004), and holding companies owned by the Levitt and Moros families. The two families founded Taro in the 1950's and together hold 45.6% of the voting rights.
Franklin is asking the court to rule that Taro is being managed in a manner which is prejudicing the rights of minority shareholders - itself included - and to direct the company to provide information, documents and data to shareholders, including the books of the company, reports of external examiners on its past conduct, and agreements with Blackstone, and to direct Taro to provide details on the offers which it received for the company. Franklin's lawyers are also requesting that the court add a clause to the company's articles of incorporation that will require future court approval of any sale or allotment of controlling shares, and that such a sale must include a full tag along option for the minority shareholders. Franklin is also asking for a special permanent manager "to verify that the company's affairs cease to be managed in a discriminatory manner." Taro has so far declined to comment on the matter.
The way Taro has been run over the last year has angered Franklin and other investors, and this is expressed in the share price - $10.6, which reflects a market cap of $180 million. Slightly under a year ago, in June 2006, Taro announced that it would have to restate its results for 2003 and 2004 and it also failed to submit its later reports on time. Only after a year, in March 2007, was the full 2005 report filed. The report carried a going concern qualification.
"The delay and the concealment for a year is a scandal in itself, the likes of which we have never seen," says the lawsuit. "The company is being run in a defective and scandalous manner which could lead to insolvency, in a manner which is prejudicing the rights of minority shareholders, including shamelessly concealing the secrets of the company for over a year, and they intend to continue to conceal and deny. Taro in a chronic and defunct state, in which the company, led by its controlling shareholders, actively prevents access by shareholders to vital information which would enable them to supervise the affairs of the company and make informed decisions about their property… The company management's efforts to "save" from drowning the company that it drowned are in fact attempts by the controlling shareholders to "save" their personal capital at the expense that of the minority shareholders. Public shareholders are expected to sit quietly and watch the sinking ship, while they are deprived of their rights."
Will do my best Dubi.
Come back soon, your absence is like YOM KIPUR on this board:)
Idit
One more for TEVA- Omnicef® Capsules and Omnicef® for Oral Suspension had annual sales of approximately $325 million and $533 million, respectively, in the U.S. based on IMS sales data
Teva Gets FDA Approval for Generic Drug
http://biz.yahoo.com/ap/070510/teva_fda_approval.html?.v=1&printer=1
Thursday May 10, 11:27 am ET
Teva Gets FDA Approval for Generic Antibiotic to Treat Infections
WASHINGTON (AP) -- Teva Pharmaceutical Industries Ltd., the world's largest maker of generic drugs, said Thursday the Food and Drug Administration approved an application to market a generic antibiotic used to treat bacterial infections.
Shipments of the generic drug used to treat ear, sinus and skin infections has already started.
The Jerusalem-based company is currently involved in a patent dispute with Abbott Laboratories over the antibiotic Omnicef in federal court in northern Illinois. Abbott filed suit against Teva in March 2007.
Shares of Teva rose 12 cents to $38.45 in midday trading.
Shlomo Greenberg on the never ending story of TARO
Taro - one for the speculators
May 8, 2007
http://www.globes.co.il/serveen/globes/docview.asp?did=1000209752&fid=1052
A long overdue management shake-up could be all that is needed to get this troubled yet promising company back on track.
Recently I mentioned Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF.PK) in one of my reviews. It is true that the company has driven its shareholders to distraction in recent years and that it has controlling shareholders that hold investors hostage, and that these even managed to fool Merrill Lynch. But one thing cannot be taken from Taro, and that is its experience in pharmacology field and its potential. Anyone who has visited the company's plants in Toronto and Haifa Bay, as I have, will be able to confirm that the infrastructure exists.
Setting aside for a moment the company's management in the US, Taro has managed to produce generic drugs which are both difficult to manufacture and which belong to fields where there is little competition. To put it another way, Taro has developed a medical niche with a potential that is sky high, and were it not for its odd management, the company's stock would almost certainly be at a much higher level than it is today. The company focuses on the manufacture of oils and generic ointments of the kind which the US Food and Drug Administration (FDA) do easily approve since the FDA does not know what effect these compounds, which are applied to the skin but then absorbed into the bloodstream, have.
Either way, after what I went through with Savient Pharmaceuticals Inc. (Nasdaq: SVNT), it would be well worth ignoring the atmosphere surrounding the company on Wall Street, and focusing instead on the direction it could take on Main Street. I would not have wasted time on Taro were it not for the many readers who have pressed me for an answer to the question - why can't the change that took place at Savient happen at Taro too?
I gave the matter some thought and concluded that indeed, why not? After all, both Taro and Savient are veteran companies with knowledge and experience in niches with tremendous potential, and both of them have suffered (and in Taro's case, still suffers) from bad management.
There are those who claim that the difference lies in the fact that Savient did not have the large shareholders that Taro has, but this is not entirely correct. Shaking up the management at Taro will be harder but it can still be done with the help of a serious "leader" that will begin moving aside the current management. It is clear to me that this process has already been set in motion with the entry to the company of leading parties at interest. Those shareholders that continue to hang on to the company surely understand that they will be unable to restore it to its past glory, and they would be doing themselves a favor if they found a lead buyer or partner that could take the stock up to $20-30. These shareholders are recklessly playing with their own futures and those of ordinary shareholders, since the current period represents a time window in the medical generic field that will not last indefinitely, so now would be the right time to take a deep breath and vacate the driver's seat.
Naturally, I am not alone in thinking this. Last week I saw a recommendation for Taro by analyst Brian Laegeler of Morningstar.com, without doubt one of the more important and well-known sites in the financial world. Let me assure you that, following Laegeler's review, a good many institutions, which constitute Morningstar's main audience, will now be taking note of the company and its stock. This doesn't mean anything, certainly not with regard to the immediate future, since institutions do not rush to invest in Pink Sheets-listed companies, not least one that fooled Merrill Lynch's analysts, but all it will take is a few such institutions that agree with Laegeler's opinion that the stock is worth $20 to ensure that it actually does get there.
In 2006, after the crisis reached its peak, Taro restructured and according to its 20-F filing with the US Securities and Exchange Commission (SEC), the company believes that it will emerge from the crisis in 2007. It also recently appointed a new CFO.
Laegeler is an analyst who follows companies in the pharmacological industry such as Mylan Laboratories Inc. (NYSE: MYL) and others. In his review of Taro published on May 2, he recommends buying the stock at the current price of $6.80, and according to his model, its current value stands at $13. Laegeler notes that this is a very speculative investment, but one with great potential. Only 7% is held by institutions and virtually all the rest is held by two funds managed by Franklin Resources Inc. He does not comment on the recent purchase of three million shares by Brandes Investment Partners.
Taro is currently developing an anti-cancer drug called T-2000, which Laegeler thinks could be a real success but even if it fails, he believes that 2006 was good year for the company, and that it will see sharp growth in 2008. So if that's the case why is the stock in such a lousy state? (it is currently trading at $6). There are several reasons for this. First there is the crisis that the company has been going through. Then there is the location - the intention being to Canada rather than Israel.
Laegeler claims that "two thirds of Taro's US products originate from Canadian factories, and its manufacturing cost advantage has dissipated with the appreciation of the Canadian dollar. It is a small company that channels 40% of its sales through powerful wholesalers. Its principal customers have demanded unfavorable terms that have led to cash-flow problems and a recent revenue restatement." Lastly there are the families who are not interested in selling, which has deterred many investors from touching the stock, me included.
Laegeler concludes by saying that he believes that Taro's shareholders will benefit from an acquisition by a large generic company which could merge it with its own businesses. His decision to view the stock as one that could be worth as much as $20 follows Taro's restructuring process which is now almost complete. Laegeler feels that Taro's main competitors are Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), Perrigo Company (Nasdaq:PRGO; TASE:PRGO), Novartis AG (NYSE: NVS), and the German company Altana Pharmaceuticals (now part of the Nycomed Group).
When Laegeler wrote his review, the stock stood at $9-9.15, and today it is at slightly over $6. Brandes purchased its shares for an average price per share of $9 and higher. So it is worthwhile entering Taro? It certainly would be for speculators, since people like these entered at even higher prices. My advice to the average investor is wait for the company's 2006 financials and its guidance, and then decide. Perhaps someone will have managed to persuade the current management to step aside by then.
Teva just keeps going by Shlomo Greenberg
May 9, 2007
http://www.globes.co.il/serveEN/globes/nodeView.asp?fid=1052
The analysts may have rediscovered it recently but this company has always headed in one direction only: north.
The problem with companies like Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) lies not just in the entry of large speculators that disrupt normal trading in the stock, but also the fact that the new generation of analysts tends to write for millions of day traders.
In the more distant past, the model used when assessing Teva was to look at it as a unit that included several profit centers. The analyst would look at each unit individually viz-a-viz its respective market and at the end of the process he would summarize the estimates and arrived at a conclusion. The analyst of today does the same, but the emphasis is placed on specific events in defined fields. For example, Teva's stock can suffer a substantial loss in value because the company fails in the development of a single popular generic drug. It can be severely harmed by a change of CEO, and it can also be severely harmed if another company develops alternative drug to Teva's, even if that alternative is not even on the market yet, or failed on the real market, as was the case with Tysabri. Ever since it first faced the challenge from Tysabri in 2004, the damage caused to Teva's stock has often been quite severe and when Tysabri was approved, the stock responded as if Copaxone had been completely neutralized completely in the real market.
Teva started 2006 at $44.50, while Elan Corp. plc (NYSE: ELN) (the company that developed Tysabri) started at $14.30. As the end of June approached Teva stood at $30.50, while Elan was almost at $17. Elan's gain of more than 30% stemmed in its entirety from the hopes that Tysabri had aroused in the stock. Conversely, Teva's 31.5% drop stemmed largely from a fear of Tysabri.
Let's take a closer look at that period. Tysabri sent Wall Street crazy and that it caused everyone to forget the fact that, with all due respect to this drug, it was still not on the market. Copaxone sales were continuing to climb steadily every month despite the fears that Tysabri could make it redundant, including during the six months in which Teva's stock fell while Elan rose. In addition, during those first six months of 2006, two truths became clear to analysts and investors; one was that even if Tysabri was a resounding success the chances that it would force Copaxone out were extremely low; the second and more important truth was that Copaxone, important as it might be, is not Teva's main product. Yet Teva still tumbled and Elan rose.
When it transpired that Tysabri for all its amazing qualities could still kill patients, Teva should have regained ground against Elan, and everyone agrees that this should have been the case. But what happened in practice was that in the month following the announcement about the risk of death from Tysabri, Elan fell 30% while Teva gained 18% only. This tells us that Tysabri had a tremendous affect on Teva's stock as long as it remained a dream. Once reality set in Elan certainly took a hammering, but Teva did not return to its old self. If you look at what happened to Teva during the first six or seven months of 2007, you'll notice that there were nothing but improvements. Even the fear of incompatibility in the Ivax acquisition faded completely.
Let's leave the stock aside for a moment and look at the analyses of Teva at that time. The overwhelming majority of analysts placed a lot more focus on the extent of the effect that Copaxone was having on Teva than on the company itself as a complete unit. I wrote at the time that the preoccupation with the strange relationship between Teva and Tysabri was misleading, and not just because Teva as a group was continuing to move forward as its management had promised. It was misleading because in their all enthusiasm over Tysabri, the analysts forgot to weigh the possibility of the entry of a new drug to the already saturated market.
If you go back 20 years to 1987, when Teva was first floated in the US, and compare the progress of its stock with that of leading drug companies you will discover something interesting. I have compared Teva's stock with that of the following companies: Pfizer Inc. (NYSE: PFE), Novartis AG (NYSE: NVS), Mylan Laboratories Inc. (NYSE: MYL), Eli Lilly & Co. (NYSE: LLY), Bristol-Myers Squibb Co. (NYSE: BMY), and Merck & Co. Inc. (NYSE: MRK). Until 1992, Teva was in the middle of this group in terms of stock gain, just above Bristol-Myers and below the others. Since 1992 onwards, save for a three-year interval from the summer of 1997 through the summer of 2000, when Pfizer was ahead of Teva, Teva found itself further and further ahead of the group, Pfizer included.
As most of the holders of Teva stock throughout these years were global entities, usually American, two questions must be asked. Firstly, why is Teva being increasingly preferred by healthcare investors? Second, why does Teva continued to be prone to periodic bouts of short-term volatility? Answering the second question is easy. This volatility is a function of the new IT world and the traders and hedge funds that inhabit it. It is an occurrence that is becoming increasingly commonplace as comprehension levels fall, and it is the same whether the company in question is Teva, Microsoft, or Click Software. There is no difference here between big and small companies.
The first question is more difficult to answer. I have firm views about this and I have reiterated them from time to time. Like other companies such as perhaps Given Imaging, or NDS, Click Software, M-Systems or even Saifun, Teva is what I describe as a leading company that has taken the lead in a new and rapidly developing field, thanks to its innovation, originality and the strict adherence to its strategic goals.
It took time for the world to realize that Teva is the leader in the generics industry, and a bit longer to realize that this industry just keeps growing. Teva's investors have nothing to fear from the likes of Tysabri, and not even the arrival of a new inexperienced CEO who, to judge by his past record, does not look like the right candidate for the job. Why? Because if the management team continues the tradition of innovation, originality and adherence to strategy laid down by Eli Hurvitz, there is no reason why what happened in the last 20 years should not repeat itself in the next 20. The normal investor (of which there are less and less), should stick to the facts and take the ephemeral histrionics in his stride.
As for the bidding for the generics division of German company Merck KGaA, Teva is currently believed to have a 50% chance of clinching the tender, with Mylan the only other contender left in the race. As for Copaxone, it appears that this drug is not likely to have a change in fortunes in the foreseeable future. Quite the contrary; it has now emerged from the ongoing testing and research that Copaxone is even better than they thought it was. So as I have said repeatedly for the last 20 years, it is possible and sometimes it is even worthwhile playing the markets, but only with a portfolio that is built for the long-term and which has stocks such as Teva, Elbit Systems, NDS and their ilk.
I'll end today with a true story about someone called Berkovitch who died and left an inheritance consisting of 200,000 Teva shares. He first bought 20,000 shares back in 1987 and "put them in the safe." Over the years I asked him from time to time why he didn't sell as he would have made a small fortune. "Why sell?" he would ask rhetorically, "Has anything gone wrong at Teva? Is the generics industry about to vanish?" This is the way to treat stocks and companies like Teva. As it happens, I noted that most analysts are pretty hot about Teva at the moment. What happened? Has anything changed since the end of last year? Has Israel Makov returned? Nothing has changed at all.
It is true that current drugs are not doing too well by themselves. It is also true that we need to look at cancer as a multigene syndrome. But it is also essential to try and understand the mechanism. Genomics is an important tool for that purpose. Even if we have the best diagnostic tools available for early detection of tumors, not all of them can be removed so we still need to address it pharmacologically.
I think that going publicly against the Cancer Genome Project is counterproductive.
Teva wins FDA approval for generic Gemzar
http://www.globes.co.il/serveen/globes/docview.asp?did=1000209927&fid=942
Eli Lilly has sued Teva for patent violation concerning this drug.
Gil Shlomo 8 May 07 18:54
Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) today won US Food and Drug Administration (FDA) tentative approval for its abbreviated new drug application (ANDA) to market its generic version of Eli Lilly and Co's (NYSE:LLY) cancer treatment Gemzar (Gemcitabine) for injection, 200 mg base/vial.
Teva said that it was currently in patent litigation concerning this product in the US District Court for the Southern District of Indiana. Final FDA approval is expected if the court rules in Teva’s favor or when the of the mandatory stay of approval expires in July 2008, whichever comes fir
Given Imaging moves to profitability
http://www.globes.co.il/serveen/globes/docview.asp?did=1000209600&fid=942
The company expects its full-year results to be at the higher end of its guidance range.
Adi Ben Israel 8 May 07 11:43
Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) has published an unaudited financial report for the first quarter of 2007 in which it said that it had moved to profitability, amid double digit growth in sales. Despite missing the analysts' estimates, Given CEO Nahum (Homi) Shamir voiced optimism about the future, stressing that the company's revenue for 2007 would be at the higher end of its full-year guidance.
Company revenue for the first quarter rose 14% to $23.1 million, while gross margins fell to 73.9% from 74.6% in the corresponding quarter in 2006. Given Imaging posted a net profit, on a non-GAAP basis, of $1.2 million, or $0.04 per share, compared with a loss of $1.7 million or $0.06 per share in the corresponding quarter. This missed the analysts' estimates, which predicted earnings per share of $0.09 on $24.6 million revenue.
"We are pleased with this quarter's results which put us firmly on track to achieve our $114 million to $119 million guidance for 2007. We now expect our full year 2007 revenues to come near the higher end of this range" said Shamir. "We achieved strong PillCam SB sales this quarter particularly in the United States where PillCam SB sales increased by 23%." The analysts' consensus predict that the company will post annual sales of $116.06 million for 2007.
Yesterday Given Imaging announced that the Wisconsin Physicians Service (WPS), the Medicare Part B Carrier for Wisconsin, Illinois, Michigan and Minnesota, had revised its coverage policy which will now allow for the company's PillCam SB to be used as a primary diagnostic tool to evaluate patients with suspected but undiagnosed Crohn's disease, small bowel tumors and malabsorption syndrome. WPS serves around three million Medicare members.
Published by Globes [online], Israel business news - www.globes.co.il - on May 8, 2007
Bloomberg: Teva, Mylan left in race for Merck KGaA generics
The result of the bidding for the division, whose price tag is $6.1 billion, will be known within two weeks.
Gil Shlomo 7 May 07 10:27
"Bloomberg" reports this morning that Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) is offering more than €4.5 billion, or $6.1 billion, for the generics division of German pharmaceutical company Merck KGaA. "Bloomberg" quoted two persons with knowledge of the process.
"Teva and Mylan Laboratories Inc. (NYSE: MYL) are the remaining contenders for the Merck unit after Apax Partners and Bain Capital LLC dropped out this week, said the people who declined to be identified," "Bloomberg" said. Either way, a decision on the winning offer will be announced within two weeks.
Last week, Teva published financials that beat the forecasts, and which reawakened interest as to whether Teva would go ahead with its bid for the Merck division and the price it would be willing to pay for it. WR Hambrecht noted in this regard that, “the cloud could be providing an artificially discounted stock at $40."
http://www.globes.co.il/serveen/globes/docview.asp?did=1000209014&fid=942