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Citi Reiterates a 'Buy' on Teva Pharmaceutical (TEVA); Generic Yaz Launch Adds Upside Pressure to Earnings

June 2, 2010 9:38 AM EDT
TEVA Hot Sheet
Rating Summary:
    9 Buy, 9 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 8 | New: 20
Citi reiterates a 'Buy' on Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA), price target $72.

Citi analyst says, "Generic Yaz Could Account for $0.16 in EPS for Teva in 2010E — We assume that Teva reaches a peak market share of 75% of the Yaz market by 4Q10, with Teva pricing Gianvi at a 25%-35% discount to Bayer’s attractive wholesaler acquisition cost of $64.91 per Yaz (24/4) 28 day pack. We assume Teva enjoys 180 days of exclusivity, with no competition from any other generic manufacturer, especially since neither WPI nor NVS’ Sandoz division have received tentative approval from the FDA and are still in litigation with Bayer (NYSE: BAY). We don’t expect that Watson (NYSE: WPI) or Sandoz launch generic Yaz in 2010."

To see all the upgrades/downgrades on shares of TEVA, visit our Analyst Ratings page.

Teva Pharmaceutical Industries Limited (Teva) is a global pharmaceutical company that develops, produces and markets generic drugs covering all treatment categories.

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