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Sterne Agee Analyst: Court Win To Boost Net At Teva Pharmaceutical

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Teva Pharmaceutical Industries Ltd's (NYSE: TEVA) Supreme Court win Tuesday represents a small gain for the company, according to an analyst.

Teva changed hands recently at $58.44, up 1.2 percent.

Justices ruled that an appeals court wrongly invalidated a patent on Teva's Copaxone treatment for multiple sclerosis.

As a result, generic competition for the drug could be delayed until Teva's patent expires in September, according to Sterne Agee's Shibani Malhotra, who called the court's decision "incrementally positive" for Teva.

The lower end of Teva's current earnings forecast of $5 to $5.30 a share for 2015 assumes an early entry of generic competition for Copaxone, according to Malhotra, who maintained a Buy rating and $65 target.

The ruling "moves earnings up from the $5 floor," Malhotra said.

Moreover, Teva is now afforded "a longer runway to convert the franchise" for Copaxone to a 40mg dose, from 20, Malhotra said.

The new product requires less-frequent dosing and has patent protection into 2030.

Teva Chief Executive Erez Vigodman reportedly told investors earlier this month that the appearance of a generic Copaxone in 2015 "is by no means certain," although the company is preparing for the possibility.

Latest Ratings for TEVA

DateFirmActionFromTo
Feb 2020Argus ResearchMaintainsBuy
Feb 2020Morgan StanleyMaintainsUnderweight
Feb 2020B of A SecuritiesMaintainsUnderperform

View More Analyst Ratings for TEVA
View the Latest Analyst Ratings

Posted-In: Shibani Malhotra Sterne AgeeAnalyst Color Price Target Reiteration Analyst Ratings

 

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