Deutsche Bank Offers Quick Thoughts on Teva Pharmaceutical Industries Ltd.'s Generic Nexium

In a report published Tuesday, Deutsche Bank analyst Gregg Gilbert reiterated a Buy rating and $65.00 price target on

. In the report, Deutsche Bank noted, “TEVA announced a final approval for its generic version of Nexium, a $2bn product (reported US sales; IMS sales are ~$6bn) marketed by AZN for the treatment of gastroesophageal reflux disease (GERD). While we cannot predict when other generic companies will secure approvals, we see this as a significant sales and EPS opportunity for TEVA in 2015 and hopefully beyond. At a 60% discount and 40% share, annualized sales and EPS power (assumes no reinvestment) could approximate $290mn and $0.11, respectively (assumes a 40% pre-tax margin). We are not changing our model now but this news makes us more comfortable in TEVA's potential to exceed estimates in 2015.” Teva Pharmaceutical Industries Ltd. closed on Monday at $59.00.