Teva Gets a Head Start Over Rivals With Launch of HIV Generics; Analyst Says ‘Buy’, , on October 7, 2020 at 12:55 am

By
On October 7, 2020
Tags:

Teva Pharmaceutical (TEVA) is not a company immune to controversy, but one long standing overhang might have just been removed.Last week, the global generics pharma company announced the launch of the first FDA-approved generic versions of Gilead Sciences’ HIV treatments Truvada and Atripla.The launch brings to an end a patent case which stretches back to September 2018, one which Raymond James analyst Elliot Wilbur calls “one of the lengthier PIV battles in recent memory.”In addition to being able to tap into a lucrative market – Truvada generated global sales of $753 million in the first half of 2020, while Atripla snagged a more modest $176 million – Teva has an opportunity to establish its new offerings ahead of anticipated competition.“While we expect other generic filers are not far behind in entering this market (there are at least 9 other filers on Truvada),” Wilbur noted, “Teva’s earlier settlement at least gives the company a head start relative to the competition in launching the generic versions of these drugs. The approval will help Teva finish the year strong, after generic versions of other potential 2020 launches including Restasis, Nuvaring and Forteo have seemingly been lost in FDA generic approval morass.”While Wilbur assumes that Gilead could enter the market with a self-marketed or authorized generic, the analyst estimates Teva’s jump on the competition could provide it with 30 to 40% of this generics market.Despite other patent cases also reaching settlement, it remains unclear when the next generic wave of generic offerings will hit the market, although Wilbur assumes “further generic competition is not far behind, resulting in pricing assumptions that largely reflect the eventuality of a more commoditized generics market.”Wilbur estimates the branded market has annual sales of roughly $1.9 billion, putting generics “at roughly $500-$600M per year out of the gate.”Based on this, Wilbur expects Teva to generate around $80 to 100 million in 4Q20 “channel stocking sales,” resulting in “incremental EPS of $0.04-$0.05 in 4Q20.”To this end, Wilbur keeps an Outperform (i.e. Buy) rating on TEVA shares alongside a $15 price target. This figure implies a 63% upside from current levels. (To watch Wilbur’s track record, click here)Granted, not everyone is as enthusiastic about Teva as Wilbur. Out of 10 analysts tracked in the last 3 months, 2 are bullish on Teva stock, 7 remain sidelined, while 1 is bearish. Worthy of note, the 12-month average price target stands at $12.33, which implies a 34% upside. (See Teva stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

Teva Gets a Head Start Over Rivals With Launch of HIV Generics; Analyst Says ‘Buy’Teva Pharmaceutical (TEVA) is not a company immune to controversy, but one long standing overhang might have just been removed.Last week, the global generics pharma company announced the launch of the first FDA-approved generic versions of Gilead Sciences’ HIV treatments Truvada and Atripla.The launch brings to an end a patent case which stretches back to September 2018, one which Raymond James analyst Elliot Wilbur calls “one of the lengthier PIV battles in recent memory.”In addition to being able to tap into a lucrative market – Truvada generated global sales of $753 million in the first half of 2020, while Atripla snagged a more modest $176 million – Teva has an opportunity to establish its new offerings ahead of anticipated competition.“While we expect other generic filers are not far behind in entering this market (there are at least 9 other filers on Truvada),” Wilbur noted, “Teva’s earlier settlement at least gives the company a head start relative to the competition in launching the generic versions of these drugs. The approval will help Teva finish the year strong, after generic versions of other potential 2020 launches including Restasis, Nuvaring and Forteo have seemingly been lost in FDA generic approval morass.”While Wilbur assumes that Gilead could enter the market with a self-marketed or authorized generic, the analyst estimates Teva’s jump on the competition could provide it with 30 to 40% of this generics market.Despite other patent cases also reaching settlement, it remains unclear when the next generic wave of generic offerings will hit the market, although Wilbur assumes “further generic competition is not far behind, resulting in pricing assumptions that largely reflect the eventuality of a more commoditized generics market.”Wilbur estimates the branded market has annual sales of roughly $1.9 billion, putting generics “at roughly $500-$600M per year out of the gate.”Based on this, Wilbur expects Teva to generate around $80 to 100 million in 4Q20 “channel stocking sales,” resulting in “incremental EPS of $0.04-$0.05 in 4Q20.”To this end, Wilbur keeps an Outperform (i.e. Buy) rating on TEVA shares alongside a $15 price target. This figure implies a 63% upside from current levels. (To watch Wilbur’s track record, click here)Granted, not everyone is as enthusiastic about Teva as Wilbur. Out of 10 analysts tracked in the last 3 months, 2 are bullish on Teva stock, 7 remain sidelined, while 1 is bearish. Worthy of note, the 12-month average price target stands at $12.33, which implies a 34% upside. (See Teva stock analysis on TipRanks)To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road
#12-01 Capital Tower
Singapore 068912

New York

Coming Soon!

Dubai

Coming Soon!

Market Coverage