Teva Pharmaceutical Industries Ltd (TEVA)

[investora2z]

An article on SA recently mentioned that despite the patent cliff worries, the company's target price has been raised by Susquehanna, and Soros Fund Management has increased its equity stake. The generic segment is expected to do better over the years as there is a global shift from patented drugs towards the generic ones. The growth in this segment over the next few years will surely help Teva as more than half its revenues come from generics. Even if Teva is able to maintain its market share in the US generics market, it will grow at a decent pace over the next few years. Copaxone patent expiry will surely hit the sales, but new launches and better performance from existing products can help make up for the loss. It got an Orphan designation for Treanda in indolent B-cell non-Hodgkin lymphoma, and has six months of pediatric exclusivity for the drug. Performance by ProAir and Qvar is also expected to help. Entry into other segments, and its strong pipeline will also lead to tangible results over the next few years. The R&D spending is being increased to support future growth. The next few years are likely to improve the margins of the company as it is focusing on making itself more efficient and cutting down the costs. 70% of the expected cost savings will be achieved in the upcoming three years. The forward P/E is reasonable and the dividend yield is also better than the industry average. Dr. Frost has been extremely active in exploring collaboration opportunities between his companies. Cocrystal Discovery, a company where Teva and Opko (OPK) have a stake, recently merged with Biozone pharmaceuticals (BZNE) to take advantage of expected synergies. Teva, meanwhile, remains stuck in the $6 range between $36 and $42. It will require something major to breakout beyond this strong resistance.