Flooded Generic Market Mutes Growth Potential for Teva Pharma (TEVA) - Cramer

Despite Teva Pharmaceuticals (NYSE: TEVA) being a leader in the generic drug market, some chinks in the armor remain.

Stock soothsayer Jim Cramer noted that, while the generic market was robust in the 1990s and aughts, times have changed as there are fewer key drugs coming off patent protection and competition in the segment has risen.

Teva also has a branded drugs unit, Cramer said. Shares will be on the mend once its $3.8 billion multiple sclerosis drug loses patent protection.

Though Teva shares seem relatively cheap at 7 times earnings, Cramer warns the upside from here is limited and the company is a value trap.

Early Friday, Teva is down about 0.7 percent.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Gilead Sciences (GILD) Misses Q1 EPS by 288c
• Arca Biopharma (ABIO) Reports Q1 Loss of $0.14
• Primis Financial (FRST) Misses Q1 EPS by 8c