Will generic Viagra turn Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) shares to the upside?
Today, the generic drug giant announced the exclusive launch of its generic Viagra (sildenafil citrate) tablets in the U.S.
Viagra (generic name sildenafil) is a drug used in the treatment of erectile dysfunction, also known as impotence. Introduced by Pfizer Inc. in March 1998, Viagra has generated about $1.4 billion in the U.S., according to IMS data as of August 2017.
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Subsequently, Pfizer Inc. (NYSE:PFE) will begin selling the pill at half the $65-a-pill retail price as of today.
TEVA EVP of North America Commercial commented, “The launch of Teva’s sildenafil tablets brings an affordable generic treatment option to the estimated 18 million men in the U.S. who are diagnosed with erectile dysfunction,” said Brendan O’Grady, Executive Vice President, North America Commercial at Teva. “Our team has made it a priority to ensure that patients are able to access this medicine—through both traditional and more innovative channels.”
Teva is also offering wraparound services to support patients, such as a sildenafil tablets savings card with which people who meet certain requirements are eligible to participate in the program and may pay as little as $0 out-of-pocket with a maximum benefit of up to $100 per fill, for up to six sildenafil tablets prescriptions.
Shares of Teva Pharmaceutical reacted to the announcement, rising nearly 3% as of this writing. TEVA has a 1-year high of $38.31 and a 1-year low of $10.85. The stock’s 50-day moving average is $13.52 and its 200-day moving average is $21.06.
On the ratings front, Teva stock has been the subject of a number of recent research reports. In a report issued on November 29, RBC analyst Randall Stanicky reiterated a Sell rating on TEVA, with a price target of $11, which represents a potential downside of 32% from where the stock is currently trading. Separately, on the same day, Mizuho’s Irina Rivkind Koffler reiterated a Hold rating on the stock and has a price target of $16.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Randall Stanicky and Irina Rivkind Koffler have a yearly average loss of -10.9% and a return of 15.7% respectively. Stanicky has a success rate of 30% and is ranked #4643 out of 4722 analysts, while Koffler has a success rate of 50% and is ranked #237.
In the past 3 months, 4 healthcare analysts rated TEVA stock with a Sell rating, 12 assigned a Hold rating, and 3 provided a Buy rating on the stock. When considering if perhaps the stock is under or overvalued, the average price target is $14.86 which is -8.10% under where the stock closed on Friday.