Thursday, May 9, 2013

Investopedia: Adasuve Deal Is Very Good For Alexza, But What About Teva?

It was just a week when I wrote that Teva Pharmaceutical (NYSE:TEVA) seemed undervalued on the basis of its probable free cash flow (FCF) trajectory, but that a host of uncertainties (including its strategic direction/priorities) made it a tough stock to love. Wednesday's announcement of a U.S. marketing partnership with Alexza (Nasdaq:ALXA) for the controversial inhaled acute agitation therapy Adusave is a good case-in-point. While Teva may see a diamond in the rough here, a lot of investors and analysts are going to look at this as a sign that the company is flailing around in search of a new direction and embracing longshots as a strategy.

Continue reading here:
http://www.investopedia.com/stock-analysis/050913/adasuve-deal-very-good-alexza-what-about-teva-alxa-teva-vrx-bmy-lly.aspx

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