Biotech Values

[DewDiligence]

TEVA will almost certainly have to cut the dividend if management wants to maintain an investment-grade credit rating. (Moody's now rates them at the lowest investment-grade rung.)

The dirty little secret about TEVA is that, for many years, it masqueraded as a generic-drug powerhouse when the main profit driver was actually Copaxone. Inasmuch as Copaxone was a lucky one-shot, there is no realistic way to rejuvenate the company and end up with anything like the TEVA of old.

Buying now might make for a profitable trade, but I don’t think TEVA warrants consideration as a core long-term holding, which is what I generally seek from a large-cap company.