Stock Research and Analysis

by Michael Waterhouse

Bulls Say

As the largest pharmaceutical manufacturer with vertically integrated operations, Teva has the scale and resources to help minimize the threat of low-cost producers in emerging markets.
Copaxone's manufacturing difficulty combined with Teva's product pipeline, cost-savings plan, and acquisition synergies should help insulate earnings from a generic Copaxone launch.
Teva is one of the few generic firms with the financial resources and manufacturing capabilities to reproduce complex drugs, such as biosimilars and respiratory inhalers. Read more 

Bears Say

With no major potential product launches prior to Copaxone's patent expiration in 2015, Teva's branded segment will likely shrink once a generic Copaxone launches.
Some pipeline mishaps, including laquinimod's failure to meet clinical endpoints in its second Phase III multiple sclerosis trial, raises doubt about the success of Teva's pipeline, including indications for laquinimod in Crohn's and Huntington's disease.
Teva faces considerable competition from low-cost producers in emerging markets, especially India. Aggressive entry pricing could weaken Teva's dominant market position. Read more 

Management

We think Teva currently has Standard stewardship practices. While we think management’s historical capital allocation practices have mostly led to strong shareholder returns, we have mixed feelings about some of Teva's deals, especially the acquisition   Read more 

Profile

Headquartered in Israel, Teva Pharmaceutical is the world's largest generic pharmaceutical manufacturer. The company also develops and sells branded pharmaceuticals in central   Read more 

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