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Teva Pharmaceutical Industries Limited Message Board

  • investora2z investora2z Oct 6, 2013 6:35 AM Flag

    Remains in a range

    The last few weeks have again shown that the stock is locked in a range. Good news takes it higher, but selling pressure brings it closer to the strong supports around $35-36. There are hopes of improvement in fundamental performance over the next few quarters due to new launches. An article on seekinglpha mentions Niaspan's launch as an important achievement, which may help it partially make up for declines in sales in the first half. The annual sales of Niaspan were $1.12 billion as of June 2013.The author mentions that Teva also has a pipeline of several generic drugs which are likely to be launched later this year. The company has also received FDA approval for marketing and developing the generic version of Roche's (RHHBY) cancer drug Xeloda. Sales from this drug may also help improve the topline in due course. The stock is trading at decent valuations, but the declining sales and bottom-line makes it difficult call the valuations cheap. Further, Copaxone sales are expected to decline next year onwards, and that could put serious pressure on the revenues. Another article on SA mentions that 'Copaxone is already operating in an increasingly busy category with stiff competition from other injectable drugs, but will face a tougher time in future with the advent if orally-active MS drugs, notably Novartis' already-marketed Gilenya (fingolimod) and Biogen Idec's BG-12 which is tipped to be a big earner in future.' Considering this, it may not be such an easy ride for the stock. Support of Dr. Frost does help bring in some positivity as several of his recent investments have done great. He always explores possibilities of collaboration between his companies e.g. OPKO Health (OPK) is actively working to explore possible uses of Biozone's (BZNE) proprietary drug delivery systems (QuSomes) to improve cost efficiencies in manufacture of formulations. However, ultimately the stock will move on fundamentals and the next few quarters will be critical.

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