Teva has not been able to keep initial gains lately at all...it needs to push past $32 and stay way above that. Then perhaps the markets will perceive Teva as being stable and on the right path...the beginning of a path of recovery. Initially the move will be speculation and then when a new CEO is chosen and the markets like the choice and he starts doing what is needed, including cutting the dividend first, we may have a sustainable move up...to $40 initially and then...based on facts, higher. Teva is not doing well with heavy debt and what company with a market cap of some $30 billion has no CEO...not a good sign...at least I don't think so. Comments welcome .
Looks like the board has wore itself out, nothing more to talk about here until earnings or announcement of divesture or new CEO. Stock will drift from here, hopefully up going through earnings. Will visit again August 3rd, GLTA. Paint may be drying by then.
There is a positive here and that is that the company hasn't issued any warning and that tells me that things aren't as bad as it might appear....and earnings report is beginning of August, right around the corner...my perspective....
Today could show us what kind of support we have here or will the downtrend continue to a lower support level? Comments?
I had a full course of a TEVA antibiotic from Walmart for $4. Gee, I wonder how many pennies TEVA made on that one?
I have just been adding to my position for the past few months. Must have close to $75K in by now. A few years from today and I will be patting myself on the back for being so bold at to take a solid leap back into TEVA.
Well..it looks like we stay around $32 until news comes out and then we move...move or down depending on 1. CEO situation 2. Copaxone revenues and profits 3. Copaxone competition forecasts and effect on revenues and profits short term and long term 4. Generics pick up in terms of revenue, profits and how they make up for any loss of revenue and profits from Copaxone 5. market situation So, in simple words, good luck. Waiting....
I also think TEVA may be higher in a few years. But I tend to do better when I think buying something is the dumbest thing I've done. I'm a better reverse indicator than the various published sentiment readings.
CEO on CNBC refers to regular generics as commodities, so will focus on biosimilars. Novartis sales at Sandoz division were $2.5 B, down 4% as volume growth was offset by price erosion mainly in the U.S. Sales in the U.S. declined 15% due to pricing pressure in retail generics and prior year launch timing. Biopharmaceuticals sales grew 6% to $260 million mainly driven by Zarxio in U.S.A.
If it assumed that Soriot was the first choice for a CEO, it would be logical to assume that the search for a CEO also yielded other highly qualified candidates. It shouldn't take too long for an announcement in the near future. If revenue and earnings come in good in a couple of weeks and we get an announcement of a new CEO in the next month or so, we could see TEVA heading toward the $40's.
I sold my $33 strike puts this morning when the stock dipped to $31.15. Litigation is a part of normal business with these drug companies
Let's hope for a good Aug 3 CC....beat eps estimates and pay down more debt will work for me
Rezilumab(Cinqaero) getting a NICE approval of recommendation. Peak sales on this one should be....nice($1B by 2020?). Austedo, Migraine(anti-CGRP). Two biosimilars: Herceptin/Rituxan, both $7B/Y drugs... ALL the above giving Copaxone less and less importance....If expected EPS remains ~$5....I expect TEVA to be in the $50's in a New York minute....
$33 can be done...no more bad news...a record for the company....maybe rumors out there...let's see where this is going...or just normal trading action...up...up...and then down into the red...and then again to where the stock began trading for the day...good luck.
RE: a new CEO, the major takeaway TEVA investors should have is that the stock price will move up once a CEO selection is finalized. Right now uncertainty rules and the market does not like uncertainty.
Novartis earnings today make things look a bit more shaky in the near-term, and I assume we will know more as a few others report earnings like ESRX, MCK, and CAH before TEVA. While Sandoz kept FY17 guidance, the comments from that call were a little less than encouraging. So price erosion was -8%, similar to 1Q, but the detail I didn't like was that US generics were down 15% on a constant currency basis, and they also highlighted that this was not specific to Sandoz and that they see this as a way of life, implying that pricing pressure is pretty well entrenched and unlikely to abate. TEVA needs to execute on asset sales within the next few months in my opinion to avoid needing to cut their dividend (Peterburg is on record saying they want to keep their ratings, so the agencies may require this if business deteriorates further). This definitely won't allay concerns of a guidance cut coming down the pike, in my opinion, but I do feel like too much negativity is still baked into these prices, even factoring in a potential guidance cut. Last quarter, TEVA's guidance implies 7% net price erosion in the US + no generic 40mg Copaxone competitor. My readthrough from today is that they may be able to hit their guidance, but the margin of error is razor thin.....
How much is a CEO worth to TEVA? We can obviously deduce some of how the market views it from the share price reaction to the latest headlines, and I can understand the psychological factors (comfort, lack of uncertainty, etc.), optics, and investability aspects, but on a true economic basis, how much do you think it's worth? The company is already moving to sell assets and pay down debt, and to me, it seems like in the near-term at least, I don't see how TEVA's path with a CEO looks much differently than having Peterburg at the helm for the time being. Longer-term, OK, I get it, there are strategic factors in terms of M&A, corporate structure, cost cutting expertise, etc. but how is that relevant in the near-term? All that's to say, I think any material selloff here is irrational, perhaps just as much as the increase in share price was on the way up, mainly due to psychology as opposed to true economic reality. Anyway, curious to hear others thoughts as I just don't see the Peterburg / Soriot differential as overly material to the investment case.....
Nice recovery. I have a feeling that the new CEO is coming after the earnings call. I think they tired to keep it quite so that he could participate in call... IMHO