In a report issued August 5, Maxim Group analyst Jason Kolbert provided an optimistic view on Teva Pharmaceuticals (TEVA) following the release of the company’s second-quarter results, which included net revenues of $5.0 billion, and a quarter non-GAAP EPS of $0.87. The analyst reiterated shares at Buy with a $62 price target.
Kolbert wrote, “Copaxone had strong revenues of $939M, and Teva’s success in shifting patients to 3x weekly has been dramatic (now 17% of US patients). Teva generated $1.2B in cash flow in the quarter. Teva reviewed their bridging strategy from Q213 to Q214 with generic business rising $110M, speciality (excluding MS) up $107, and OTC and other up $35, offsetting lower MS revenues of $131”.
Furthermore the analyst said, “Teva is making progress on multiple fronts: 1. A strong patient-centric pipeline with NCEs and NTEs, such as Zecuity, ER Hydrocodone, abuse deterrent tablets (Amrix and Fentora) and Effentora and Actiq (patch). 2. A growing respiratory franchise (#5 worldwide) with Reslizumab, Spiromax inhaler, MicroDose nebulizer, and generic Advair. Projecting growth from $1B to $2.5B by 2019. 3. Build-through strategic M&A: Acquisitions should complement both the generics and specialty businesses”.
The analyst concluded that, even in a post-generic Copaxone world, Teva is now well positioned to rebuild the company with organic growth (brand, specialty, generics, and NTEs) supported by acquisition driven growth.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 6.1% and a 56.2% success rate. Kolbert has a 39.5% average return when recommending TEVA, and is ranked #618 out of 3205 analysts.
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