Sunday, April 20, 2014
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Wall Street expects great things from Teva Tuesday

Teva Pharmaceuticals says it will lay out plans for 2013 and beyond Tuesday, including $1.5 to $2 billion in spending cuts.

Wall Street expects great things from Teva Tuesday

Teva is making changes at the top of its Americas unit.
Teva is making changes at the top of its Americas unit.

Teva's new chief executive officer Jeremy Levin, while lowering financial projections in a Nov. 30 call with stock market analysts, built expectations for the company in pointing to Tuesday's analyst meeting in New York.

But expectations are just that, expectations.

The company will release information about noon on Tuesday and then explain their hopes for their drug pipeline and how they plan to implement $1.5 billion to $2 billion in cost cuts.

Teva employees in North Wales and other facilities in the Philadelphia region are probably curious about their job prospects. Closing facilities is also possible.

Bloomberg reported early Tuesday morning that options traders have been bullish on the company's stock for the last week.

“2013 is already in the rearview mirror,” Jason Gerberry, an analyst at Leerink Swann & Co. who has a buy rating on the shares, said in a phone interview with Bloomberg Monday from Boston. “Investors want a look at Teva’s pipeline, getting visibility at the profit line, and also at cost savings, where they might re-invest money into new products and programs.”

Meanwhile, the company said Tuesday morning that it a struck a deal with Xenon Pharmaceuticals Inc., to collaborate on the development and commercialization of compounds that treat pain. Teva will pay $41 million up front and then up to $335 depending on "development, regulatory, and sales-based milestones."

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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