16.76 -0.15 (-0.89%)
Pre-Market: 7:33AM EDT
|Bid||16.73 x 900|
|Ask||16.74 x 1200|
|Day's Range||16.69 - 17.05|
|52 Week Range||14.59 - 25.96|
|Beta (3Y Monthly)||1.88|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||20.50|
In the latest trading session, Teva Pharmaceutical Industries Ltd. (TEVA) closed at $16.64, marking a +0.79% move from the previous day.
The trouble with value investing is that a pick that looks like a value stock could end up becoming a value trap.Source: Open Grid Scheduler (Modified)For example, Teva Pharmaceutical (NASDAQ: TEVA) is potentially a good turnaround play. TEVA hired a veteran CEO, Kare Schultz. It is cutting its debt and rolling out new products.One of Teva's biggest shareholders is Berkshire Hathaway (NYSE: BRK.A,BRK.B). After Berkshire bought TEVA stock, should you follow in its footsteps?InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 15 Stocks That May Be Hurt by This Year's Big IPOs The Good News About TEVA StockSince the fourth quarter, Teva has been addressing the ongoing shortage of EpiPen treatments. It is manufacturing more of the product and increasing its capacity to build more of it. EpiPen Jr., which has a dosage of 0.15 milligrams, compared to EpiPen's 0.3 milligrams, is scheduled to be released in the second quarter.On Feb. 4, Teva 's Ajovy migraine treatment was approved by the EU's pharmaceutical regulatory agency, the European Medicines Agency (EMA). Delivered via pre-filled syringes, each dose of Ajovy consists of 225 mg of an antibody that treats adults suffering from at least four migraines a month. It is a potential blockbuster.Migraine sufferers have few treatment options available, so getting Ajovy approved by the EMA would be a welcome development for the owners of Teva Pharmaceutical stock. Once the treatment is approved, TEVA needs to work on getting each country in the EU to agree to reimburse patients for it. Sales of Ajovy in the EU are expected to ramp up slowly over the next one or two years. Paying Down DebtTEVA expects to pay down $1.7 billion of its debt in July, using its operating cash flow and cash on hand. By avoiding both refinancing and re-negotiating its revolving credit facility, Teva could potentially lower the cost of maintaining its debt. The company is seeking to lower its net debt-to-EBITDA level to four by the end of next year. Copaxone Is a Headwind for TEVA StockFalling sales of the company's MS drug Copaxone, which lost its exclusivity, are a headwind to Teva's gross margins. Larger-than-expected gross margin declines, in turn, could weigh on TEVA stock. Opportunities Could Boost Teva Pharmaceutical StockAs mentioned earlier, gaining approval of Ajovy from the EU is a key component of Teva's turnaround plan. Getting health insurers and other payers to decide on the drug's accessibility and reimbursement details will have an impact on its success in the marketplace. In Q4, about 60% of U.S. commercial insurers covered the treatment.Generic Forteo, an injection treatment for osteoporosis, will start generating revenue for TEVA in the second half of this year. Its contribution will likely be slow at first. The product is not easy to make, and competitors will enter the market next year. Despite these challenges, TEVA is confident that the product will do well. Entering the Biosimilars MarketThrough its partnership with the hugely successful biotech firm, Regeneron Pharmaceuticals (NASDAQ: REGN), TEVA is building a pipeline of biosimilars and innovative biologics. Fasinumab, which interacts with the nerve-growth-factor protein and is supposed to treat osteoarthritis pain, met all of its endpoints in a recent trial, although data indicated that the treatment could increase the occurrence of rapidly progressing osteoarthritis.If Fasinumab, gets approved, it could be an option for doctors seeking a non-addictive pain therapy. At a time when opioid addiction has ruined so many lives, such a treatment option could help many patients. The Valuation of TEVA StockThe 13 analysts covering TEVA stock have an average price target of $19.76 on Teva Pharmaceutical stock (per Tipranks), versus the stock's level of $16.30 on Friday afternoon.Simply Wall ST estimates that the intrinsic value of TEVA stock, based on future cash flows, is $40. Those who buy Teva Pharmaceutical stock at its current level will be rewarded if TEVA stock rebound back to $40 in the next few years. The Bottom Line on TEVAValue investors cannot blindly follow Berkshire's investments, but they can evaluate Teva's potential on their own. At this point, the company's debt levels are frighteningly high. The prices and sales volumes of the company's new products may be weak in the short-term, potentially hurting its short-term results and weighing on TEVA stock.Still, Teva's CEO is highly qualified to lead the company's turnaround. Based on last quarter's numbers, TEVA appears to be heading in the right direction under his leadership.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy Today * 7 ETFs to Buy to Ride the Longevity Economy * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Compare Brokers The post After Berkshire Bought Teva Pharmaceutical Stock, Should Others Follow Suit? appeared first on InvestorPlace.
BioDelivery Sciences (BDSI) reports in-line loss in Q4. Sales beat the consensus mark. The company issues encouraging guidance for 2019.
Insys Therapeutics' (INSY) shares plunge after its auditor raises concerns related to insufficiency of funds to continue operations.
Allergan's (AGN) new drug application seeking approval for its oral anti-CGRP candidate, ubrogepant, as acute treatment for migraine gets FDA acceptance. A decision is expected in Q4.
In the latest trading session, Teva Pharmaceutical Industries Ltd. (TEVA) closed at $15.78, marking a +0.19% move from the previous day.
Eli Lilly's (LLY) supplemental biologics license application for its migraine drug, Emgality, wins a priority review from the FDA for treating episodic cluster headache in adults.
NEW YORK, March 06, 2019 -- In new independent research reports released early this morning, Capital Review released its latest key findings for all current investors, traders,.
Ten Years Gone A breeze had gently carried a slip of paper onto Broad Street. From where I did not know, but I did wonder. Somewhere else. Anywhere else. I had no idea why that slip of paper even caught my eye.
Is Pfizer or Mylan a Better Pharmaceutical Pick Right Now?(Continued from Prior Part)Performance in fiscal 2018In fiscal 2018, Mylan (MYL) reported revenues of $11.43 billion, a YoY decline of 4%. The company reported adjusted EPS of $4.58, a YoY
FDA Commissioner Scott Gottlieb is resigning from his post. During his tenure, generic drug approvals soared. The FDA also approved its first gene therapy under his administration.
Bausch Health or Teva: Which Is a Better Pharmaceutical Bet?(Continued from Prior Part)Growth drivers In its fourth-quarter earnings conference call, Bausch Health Companies (BHC) has highlighted its Bausch + Lomb/International segment and Salix
Bausch Health or Teva: Which Is a Better Pharmaceutical Bet?(Continued from Prior Part)Comparing the tax rateIn its fourth-quarter earnings investor presentation, Bausch Health Companies (BHC) has guided for a non-GAAP adjusted tax rate of 10% for
Bausch Health or Teva: Which Is a Better Pharmaceutical Bet?(Continued from Prior Part)Free cash flow projections Bausch Health Companies (BHC) and Teva Pharmaceutical (TEVA) reported free cash flow of $1.27 billion and $1.79 billion, respectively,
Bausch Health or Teva: Which Is a Better Pharmaceutical Bet?(Continued from Prior Part)Expense guidance for fiscal 2018 In its fourth-quarter earnings investor presentation, Bausch Health Companies (BHC) guided for adjusted non-GAAP SG&A
Teva Pharmaceutical Industries Ltd., (NYSE and TASE: TEVA) today announced the launch of an authorized generic of Flector®1 Patch, 1.3 %, in the U.S. Diclofenac Epolamine Topical Patch, 1.3%, a nonsteroidal anti-inflammatory drug (NSAID), is indicated for the topical treatment of acute pain due to minor strains, sprains and contusions. “The launch of our authorized generic of Flector® Patch in the U.S. is an important addition to Teva’s portfolio of over 40 generic pain management medicines,” said Brendan O’Grady, EVP and Head of North America Commercial.
Bausch Health or Teva: Which Is a Better Pharmaceutical Bet?(Continued from Prior Part)Earnings guidance for fiscal 2019In its fourth-quarter earnings conference call, Bausch Health Companies (BHC) guided for fiscal 2019 non-GAAP adjusted EBITDA of
Congressional hearings underway are creating plenty of unnecessary uncertainties for life sciences stocks in the generic drug space. Government oversight over how drugs are priced could put even more pressure on generics and hurt life sciences stocks.With no exclusivity and more reasons for firms to battle each other on the lowest price, investors are selling companies facing generic drug competition now and asking questions later. That reaction is irrational: governments may end up doing nothing to change the drug sales model that is vital to life sciences stocks. * 7 March Madness Stocks to Consider for the Big Dance Here are the three life sciences stocks whose shares took a tumble very recently.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Life Sciences Stocks: Teva Pharmaceuticals (TEVA)Teva Pharmaceuticals (NYSE:TEVA) reported respectable 2018 revenue of $18.9 billion and free cash flow of $3.7 billion. Its acquisition of Actavis Generics significantly strained its balance sheet but the company still managed to reduce net debt by 14% to $27.1 billion. Teva launched Ajovy, an injectable prescription drug that is used to prevent migraine headaches in adults. Austedo, which treats tardive dyskinesia and Huntington's disease, is growing rapidly.Copaxone maintained its market share in the U.S. with $1.697 billion in net sales in 2018. The prescription or TRx share was around 21.8%. In the 40mg space, Copaxone took 74.7% share of the 40mg glatiramer acetate market (as of December 2018).Markets are not so optimistic about the generic competition for Copaxone. It reacted by selling the stock when it reached $20, pushing it down to around $17 a share after the Q4 earnings report.Teva is prepared for the pricing pressure it faces for Copaxone, where generic competition will hurt most in the U.S. Outside of this region, the situation is more stable. Astute investors will watch the sales growth for Audtedo and Ajovy, whose revenue needs to offset the sales declines in Copaxone. Mylan N.V. (MYL)Mylan N.V. (NASDAQ:MYL) is Teva's competitor because it recently launched a generic to Copaxone. Unfortunately, the downward trend in the stock in the last year capitulated with the stock falling even further, from around $32 to $26, after the fourth-quarter earnings report. Mylan reported the uptake of its generic Copaxone was slower than management expected. Cutting prices by over 60% did not help sales.Slow uptake for its generic Copaxone and delayed approval of its generic Advair hurt fourth-quarter results and the 2019 outlook. Despite those issues, Mylan reported a healthy $11.4 billion in total revenue in 2018 and $2.7 billion in adjusted free cash flow. It paid back more than $630 million in debt.For the Morgantown plant issue, in which it received a warning letter regarding previously disclosed observations. Mylan took a $258 million restructuring and remediation expense. Investors might assume the problems at this location will get resolved, but for now, markets may continue to punish the stock for its less than perfect operating record. * 9 Best Stocks to Buy on U.S.-China Trade Optimism At a free cash flow forecast of $1.9 billion-$2.1 billion in 2019, management could do two things to enhance shareholder buyback. First, buying back stock would help EPS for the year. Second, initiating a dividend would reward investors who are patiently holding the stock. GlaxoSmithKline (GSK)Even though GlaxoSmithKline's (NYSE:GSK) Advair faces competition from Mylan's generic to the drug, the stock is performing relatively well. Not only are valuations still reasonable at a 20.8 times P/E and 13.6 times forward P/E according to Morningstar, but GlaxoSmithKline's stock pays a dividend yielding 5.1% over the past year.On Feb. 12, Mylan launched Wixela Inhub, at a list price that is 70% below that of Advair Diskus and 67% below GSK's authorized generic version. Even before the launch, U.S. Advair sales fell 30%. With the competition modeled in its outlook, GlaxoSmithKline still expects a significant decline in Advair this year. So, why are markets not worried about this news? Markets rewarded the stock after the company posted fourth-quarter results.GSK posted revenue growth of 7.3%, to £8.2B billion. 2019 will be another strong year, with the HIV business being led with two drug regimens. This will follow the 2018's 16% growth of dolutegravir. Looking ahead, approval of its dolutegravir and lamivudine combination in its second quarter will help GSK maintain its 27% market share in the U.S.GSK's balance sheet is solid. Free cash flow grew by £2.2 billion to £5.7 billion last year. This will ensure the company continues to pay a dividend at the same amount as last year. Its debt increased, driven primarily by its buy-in of Novartis' consumer stake. It's a standout among life sciences stocks.As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons Kraft Heinz Stock Is a Contrarian Buy * 5 Housing Stocks to Buy for Renewed Homebuilder Confidence * 7 of the Best ETFs to Buy for a Rock-Solid Portfolio Compare Brokers The post 3 Life Sciences Stocks to Invest In appeared first on InvestorPlace.
Bausch Health or Teva: Which Is a Better Pharmaceutical Bet?Stock price movementsOn February 26, Bausch Health Companies (BHC) closed at $23.16, 0.81% lower than its previous closing price, 60.39% higher than its 52-week low of $14.44, and 18.59%
Mylan (MYL) Q4 earnings and sales miss estimates due to persistent challenges in the North America segment. The guidance for 2019 was weak as well.
The FDA accepts Alkermes (ALKS) and partner Biogen's NDA for diroximel fumarate and sets an action date in the fourth quarter of 2019.