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Buy Teva Pharma (TEVA) on Weakness Ahead of Allergan Deal Closing - BTIG

March 21, 2016 7:58 AM EDT
Get Alerts TEVA Hot Sheet
Price: $14.11 -2.22%

Rating Summary:
    12 Buy, 25 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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BTIG recommends to buy Teva Pharma (NYSE: TEVA) amid current weakness in the name. The firm rates Teva at Buy with a price target of $77.

Analyst Timothy Chiang commented, We believe the recent weakness creates a potential buying opportunity, as we think Teva should get to the finish line with its purchase of Allergan’s generic segment by June. Last week, Teva indicated that the completion of the Allergan generics deal would be delayed beyond early April to as a long as June 2016. We believe the FTC’s review is taking longer as the generic pipelines for the two companies are evaluated by the FDA for potential overlap. Recently, EU regulators approved the Teva/Allergan generics deal. Again, the transaction is valued at ~$40.5B, involving Teva (one of the world’s largest generic drug companies) acquiring Allergan’s generic segment, which generated sales of $6,375M (down 3% YOY) in 2015, as reported in its 10k filing.

Teva recently updated its expectations for the closing of the Allergan generics deal from early April to as late as June 2016, as the FTC (and the FDA) evaluate the pipelines of both companies’ generic segments for potential overlap. As a result of both companies having significant generic operations and pipelines, we are not completely surprised by the delay, and still believe a closing of this deal will occur within the next several months, Chiang noted.

For an analyst ratings summary and ratings history on Teva Pharma click here. For more ratings news on Teva Pharma click here.



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