Teva Shares Jump on 4Q Profit, Outlook
Shares of generic drug developer Teva Pharmaceuticals Ltd. jumped Wednesday, a day after the company reported a 51 percent increase in its fourth-quarter profit.
The stock gained $1.01, or 2.7 percent, to close at $37.96 on the Nasdaq. Shares have traded between $29.22 and $43.90 over the last 52 weeks.
Early Tuesday, the company reported a jump in profit to 56 cents per share, as revenue surged 63 percent on sales of new products, including the antidepressants Bupropion XL and Venlafaxine. Revenue also was augmented by products gained from the company's $7 billion buyout of Ivax Corp. in January 2006.
Analysts reaffirmed positive ratings for the company Wednesday, citing Teva's forecast for growth over the next several years.
Deutsche Bank (nyse: DB - news - people ) analyst David M. Steinberg reaffirmed a "Buy" rating with a $45 price target.
"Central to the business outlook, Teva continues to boast the most impressive generic product pipeline in the entire global pharmaceutical industry," he wrote in a note to investors.
He said the company expects growth in 2007, with more than $9 billion in projected revenue, to be driven by 30 to 40 smaller products, and large generic opportunities in 2008 will drive growth even further. The company also will regain full Copaxone rights from Sanofi-Aventis (nyse: SNY - news - people ) in 2008. It will pay Sanofi-Aventis 25 percent on revenue from the multiple sclerosis drug for the first two years. The payments will end in 2010.
"For 2008 and beyond, we continue to see solid earnings per share growth re-emerging," he said.
Citigroup (nyse: C - news - people ) analyst Robert Bonte-Friedheim reaffirmed a "Buy" rating and a $46 price target, citing the outlook and possibility for a pathway to make future generic biotechnology drugs.
Lehman Brothers (nyse: LEH - news - people ) analyst Richard Silver reaffirmed a "Overweight" rating with a $43 price target.
"Our hope is that transparency will continue to improve in the coming quarters - in particular, with greater insight and commentary on European and international business trends, given the increasing importance of these non-U.S. growth drivers," he said