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With New CEO In Place, Focus For Teva Pharma Turns To 'Execution'

With New CEO In Place, Focus For Teva Pharma Turns To 'Execution'
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Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA)’s having a big week, and it’s only Tuesday.

The drug manufacturer’s stock popped as much as 24 percent Monday after the board appointed Kåre Schultz, current head of H. Lundbeck A/S and former COO of Novo Nordisk A/S (ADR) (NYSE: NVO), its president and CEO.

Schultz brings Teva experience in cost restructuring and portfolio management amid loss of drug exclusivity.

“Teva can now begin to focus on addressing the company’s operational and financial concerns,” Gabelli & Company analyst Kevin Kedra wrote in a Tuesday note. “At the top of the list are the company’s $35B debt load and pending generic competition for Copaxone 40 milligram. Teva has already initiated efforts to divest assets, cut the dividend and reduce operating costs. With Schultz in place as CEO, the company can look at more fundamental changes such as splitting up the company.”

Teva appeared to prep for Schultz’s installation with a $1.1 billion sale of Paragard to Cooper Companies Inc (NYSE: COO)’s CooperSurgical announced late Monday. At the same time, the firm affirmed its intent to sell its global women’s health and European oncology and pain businesses.

Kedra anticipates 2017 earnings per share of $4.20, and he maintains a Buy rating on the stock.

Shares opened up 7.9 percent Tuesday on an unrelated announcement that the Food and Drug Administration granted priority review for first line use of Trisenox.

Related Links:

Teva Loses Another Bull; Credit Suisse Downgrades

Street Has No Mercy For Teva Following Dividend Cut

Latest Ratings for TEVA

Jul 2018Cantor FitzgeraldMaintainsNeutralNeutral
Jun 2018Wells FargoUpgradesUnderperformMarket Perform
May 2018CitigroupMaintainsBuyBuy

View More Analyst Ratings for TEVA
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Posted-In: Gabelli & CompanyAnalyst Color Biotech News FDA Management Analyst Ratings General


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