Why Teva Pharma (TEVA) Should Settle With Novartis - Leerink
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Leerink Partners analyst, Jason Gerberry, reiterated his Outperform rating on Teva Pharma (NYSE: TEVA) and cut the price target to $61 from $66. After losing an IPR decision on two Copaxone 40mg anchor patents, the analyst believes TEVA’s share price implies a generic entrant sometime in 2H17. In order to mitigate EPS downside in 2017-18 and eliminate business uncertainty, he believes the most prudent course of action is for TEVA to settle with the most credible generic threat Novartis AG (NYSE: NVS) for market entry in 1Q’18.
The Copaxone 40mg brand has five very similar method-of-use patents covering its 40mg formulation to treat relapsingremitting multiple sclerosis (RRMS) with three subcutaneous (Copaxone 40mg) injections over seven days. On 8/24, the Patent Trial and Review Board’s (PTAB) invalidated two of the Copaxone patents subject to inter partes review (IPR) proceeding, US patent #8,232,250 & #8,399,413, on grounds those patents were obvious in view of prior art disclosures. A decision on US patent #8,969,302, which has very similar subject matter as '250/'413, is expected on or before 9/1.
Shares of Teva Pharma closed at $50.56 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Teva Pharmaceuticals and IBM Expand Global Partnership to Enable Drug Development and Chronic Disease Management with Watson
- Edwards Lifesciences (EW) PT Lowered to $114 at Stifel, 'Buy' Kept
- RBC Capital Cuts Price Target on Pentair (PNR) to $66 Following 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!