There are several things investors have to love about Teva:
- Teva is following a similar strategy as Big Pharma by acquiring companies in areas in which it may not be a major player. An example is the acquisition of Ratiopharm GmbH and taking a bigger stake in Rexahn Pharmaceuticals.
- Teva is conducting clinical trials for drugs such as QNAZE, a treatment for perenial allergic rhinitis. Teva also has Copaxone, a FDA approved drug for the treatment of multiple sclerosis. Copaxone has revenue of $938 million last quarter, a 26% increase over the previous quarter. The patent for Copaxone expires in 2014, but Teva believes that it will take longer than that for a generic to reach the market. A combination of generic and drug discovery operations is advantageous for pharmaceutical companies.
- The patent cliff of 2011 and 2012 will make the coming years, the years of the generic manufacturers. Teva is the biggest generic manufacturer and with its expertize Teva will capitalize on future opportunities.
- Teva shares have dropped over the past days because profit missed estimates. The primary reason is the deal to acquire Ratiopharm. There was also a 5% decline in generic drug sales in the US. Investors may be able to buy stocks at a slightly cheaper price this week.
- Teva pays a dividend and the next one which will be paid at the end of the month will of $9.218, up 14% from the previous quarter.
- A wide variety of drugs are manufactured, marketed, or sold by Teva. This will ensure a revenue stream for many years to come.