Morgan Stanley Maintains Overweight on Teva Pharma Despite Guidance Miss
Morgan Stanley has published a research report on Teva Pharmaceuticals (NASDAQ: TEVA) believing that 2012E guidance would have been higher had the Tricor battle not been lost.
In the report, Morgan Stanley writes, "We and consensus expected Teva to launch generic Tricor in July 2012 under the terms of Teva's Dec. 09 settlement with Abbott. We now believe Teva will forfeit exclusivity as FDA will not approve Teva's generic formulation, per management. We believe TriCor would have added $0.15 in 2012, which in theory would have yielded a guidance midpoint of $5.73, 1% above cons' $5.67 (instead of midpoint of $5.58, 1.6% below cons)."
Morgan Stanley maintains its Overweight rating and $47 price target on Teva, which is currently trading down $0.57 from yesterday's $42.34 closing price.
