Thursday, September 18, 2014
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Analysts underwhelmed by Teva presentation

Two key stock market analysts were underwhelmed by what they heard at Tuesday's Teva Pharmaceutical presentation in New York.

Analysts underwhelmed by Teva presentation

Two key stock market analysts were underwhelmed by what they heard at Tuesday's Teva Pharmaceutical presentation in New York.

"The meeting was largely uneventful," Bernstein Research analyst Ronny Gal wrote in a note to clients..

Gal lowered his price target for the stock from $55 to $50 for late in 2013. Teva closed Tuesday at $41.67, down 85 cents on the New York Stock Exchange.

Wednesday's Inquirer story is here.

Gal's lowered estimate was based in part on his analysis that planned cost cuts of $1.5 billion to $2 billion, which were announced Nov. 30, won't kick in until 2014 and 2015 instead of 2013 as originally expected.

That short-term delay might help some workers - there were no specifics on how many job losses at Philadelphia facilities - but Gal's assessment was the cuts remain important for stockholders.

"The cost cuts looks pretty good and their achievement is critical," Gal wrote. "It is almost impossible to over-estimate the importance of these cuts."

Goldman, Sachs & Co. analyst Jami Rubin, according to Bloomberg, was concerned that the Teva pipeline did not have enough to replace the revenue from the company's top-selling drug Copaxone, which is for multiple sclerosis and loses patent protection in 2015. Rubin has a "neutral" rating on the stock.

“We do not see a pipeline drug with enough innovation to replace Copaxone,” Rubin wrote in her note to clients, according to Bloomberg. “More importantly, we would have liked to see a greater commitment to rewarding investors with additional cash returns.”

 

David Sell
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Inquirer.com. Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com.

David Sell
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