The Quarter That Was
Teva's June quarter certainly did not provide any particular causes for concern. Revenue rose 12% to $3.8 billion, as the company saw high-teens growth in the North American business. Teva's largest single product, the MS drug Copaxone, saw revenue grow 13% to a bit under $800 million, as strong North American sales offset weaker European results.
The profit side of the ledger was likewise solid and mostly uneventful. Gross margin ticked up a bit, but the company saw good leverage on the sales and marketing lines. Some of this improvement was a result of synergies from acquisitions (including Barr), but some as well came from the end of payments to Sanofi-Aventis (NYSE:SNY) relating to Copaxone. The end result, then, was 22% operating income growth and 30% EPS growth.
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4 comments:
Good article and points.
I have been following the TEVA situation because I think you are correct on the fact of it trading at a discount now vs in past.
You mention it is not the most exciting stock in this area, which ones do you feel fall in this exciting category.
@Tshad:
In terms of pure price potential, I would lean more towards Mylan and Watson (MYL and WPI, respectively).
Impax could also be cheaper, but that one is beastly difficult to value.
for excitement I would recommend http://www.intellipharmaceutics.com/
They are run by a husband and wife team who did lot of the formulation work for Biovail during their early day. Brilliant scientists and own a substantial share of the company.
Thanks for the link - I'll check that out.
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