Barclays Capital has raised its target price for Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) to $69 from $66, while reiterating its "Overweight" recommendation. Analysts Richard Silver and Ann Trimble say, "Teva remains our favorite name in the generic space."
Silver and Trimble point to three potential catalysts for the stock: upcoming rulings in Copaxone litigation; possible approval for Teva's generic version of Sanofi-Aventis SA's (NYSE: SNY; Euronext: SAN) blood thinner Lovenox; and potential final FDA approval and launch of generic versions of Takeda Pharmaceuticals Co. Ltd's (TSE: 4502) heartburn and acid reflux drug Prevacid.
The FDA should rule soon on Teva's petition to require generic drug applications to be preceded by clinical trials. An FDA ruling in agreement with Teva could hold up generic competition to Copaxone.
Silver and Trimble believe that most investors, appropriately, do not see implications for FDA's stance toward generic versions of Copaxone.
Barclays raised its 2010 earnings per share forecast for Teva by one cent to $4.53, and predicts $4.78 earnings per share in 2011.
Teva's share rose 3% on Nasdaq on Friday to $58.74. The share rose 2% by midday today on the TASE to NIS 220.50.
Published by Globes [online], Israel business news - www.globes-online.com - on February 21, 2010
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