Teva Pharmaceutical: Bold Markets, Bold Moves
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Wed, Jul. 13, 9:11 AM
- Teva's (NYSE:TEVA) corporate presentation this morning has perked up investors. Shares are up 3% premarket on robust volume.
- CEO Erez Vigodman said that there are no more hurdles standing in the way of is acquisition of Actavis Generics (NYSE:AGN). The OK by the SEC is apparently imminent.
- In this morning's call, Mr. Vigodman highlighted the benefits of the transaction, including an expected $1.4B in cost synergies and tax savings by the end of 2019. Other pluses by the end of 2019 are: accretion in non-GAAP EPS of 19%, more than $25B in cumulative free cash flow and a return on invested capital of 9.3%.
- Revenue is expected to increase from 19.7B in 2015 to $26.7B - 27.8B in 2019 (9% CAGR based on the midpoint). EBITDA should grow from 6.6B to $10.7B - 11.5B (14% CAGR). Net income is also expected to deliver a CAGR of 14%($5.42B to $7.5B - 8.1B). CAGR of free cash flow is expected to be 11% ($4.9B to $7.2B - 7.8B).
- Based on recent amendments with Allergan, Teva's net cost of the deal has dropped from $40.1B to $35.1B, reducing its net financing needs to $23B from $27B. It net debt at closing will be $34B instead of $38B. Based on expected free cash flow, Teva sees its net debt dropping to $12.7B by the end of 2019.
- In terms of FY2016 andFY2017, Actavis Generics' contribution to Net Income should be $1.8B and $1.9B, respectively.
- Q2 2016 outlook: non-GAAP EPS of $1.19 - 1.22 on revenues of $4.9B - 5.0B. for 2016: non-GAAP EPS of $5.20 - 5.40 on revenues of $$22.0B - 22.5B.
- 2019 outlook for operating income is $10.0B - 10.8B and CF Ops $8.0B - 8.8B.
Mon, Jun. 27, 7:13 PM
- Australia's Mayne Pharma Group (OTCPK:MAYNF -6.8%) is close to a deal worth about $600M to buy assets from Teva Pharmarceuticals (TEVA -3%), Reuters reports.
- The move is one of a few required of Teva for it to gain FTC approval for a $40B acquisition of Allergan's (NYSE:AGN) generic drugs portfolio. That OK could come as soon as early next month and solidify Teva's position as a generic drugs leader.
- Teva's U.S. asset divestitures would come to about $2B in total, a source said. European divestitures, including a UK/Irish generics business expected to be worth more than $1.3B, should wrap by this fall.
Fri, Jun. 24, 10:25 AM
- Intrepid biotech investors are, no doubt, seriously considering deploying some cash today in response to the (hopefully temporary) bearish reaction to the Brexit vote. Nasdaq is currently down 2.7%, the Dow 2.2% and the IBB 3.3%.
- Representative tickers: (GILD -2.2%)(GSK -2.4%)(AZN -2.7%)(PFE -1.1%)(MRK -1.9%)(CELG -3.2%)(BMY -2%)(BIIB -2.4%)(AMGN -2.7%)(AGN -2.8%)(TEVA -0.8%)(ABT -3.4%)(MDT -1.4%)
Tue, Jun. 14, 8:16 AM
- Thinly traded micro cap Mesoblast Limited (NASDAQ:MESO) is down 36% premarket on light volume in response to its announcement that development partner Teva Pharmaceutical Industries (NYSE:TEVA) has returned the rights to MPC-150-IM for the treatment of chronic heart failure to Mesoblast. Some analysts had speculated that Teva would back out of the collaboration because it was outside of its core business.
- A 600-subject Phase 3 clinical trial assessing MPC-150-IM in heart failure is ongoing, with 40% of the enrollment target achieved.
- MPC-150-IM is an "off the shelf" cell therapy based on mesenchymal lineage adult stem cells.
- Update: On July 1, the company updated investors on the heart failure study saying top-line data on the primary endpoint is expected in Q1 2017. The anticipated costs to this interim analysis will be ~$13M, well below its existing cash balance of $80M. Its quick assets will be adequate to fund operations for 12-15 months and allow for the inclusion of programs in degenerative disc disease, graft-versus-host disease and biologic-refractory rheumatoid arthritis. A fully discretionary equity facility of up to $90M ($A120M) over 36 months has been established to provide additional liquidity if needed.
Fri, Jun. 10, 12:47 PM
- Thinly traded small cap Eagle Pharmaceuticals (EGRX +34.6%) heads north on almost a 5x surge in volume in response to a favorable court ruling validating BENDEKA (bendamustine hydrochloride) U.S. licensee Teva Pharmaceutical Industries' (TEVA +0.4%) TREANDA (bendamustine hydrochloride) patents against would-be generic competitors. The upholding of the patents bodes well for premium pricing for BENDEKA, which Teva intends to replace TREANDA with because of its shorter infusion time.
- Teva licensed BENDEKA, approved for the treatment certain blood cancers, in February 2015.
Tue, May 31, 8:20 AM
- Teva Pharmaceutical Industries (NYSE:TEVA) is down 2% premarket on increased volume in response to its announcement that it received a Complete Response Letter (CRL) from the FDA regarding its New Drug Application (NDA) seeking approval of SD-809 for the treatment of chorea (involuntary movements) associated with Huntington's disease, an inherited disorder characterized by the progressive breakdown of nerve cells that leads to movement, cognitive and psychiatric problems.
- The agency did not request additional clinical trials but wanted the company to re-analyze blood levels of certain metabolites. Teva intends to address the issue as soon as possible and submit its response in Q3.
- SD-809 (deutetrabenazine) is an orally available small molecule inhibitor of vesicular monoamine 2 transporter (VMAT2) that is designed to regulate the levels of the neurotransporter dopamine in the brain.
Fri, May 6, 10:58 AM
- Thinly traded micro cap Cardiome Pharma (CRME +27.5%) is up on an 8x surge in volume, albeit on turnover of only 290K shares, in response to its announcement that it has inked a deal with an affiliate of Allergan (AGN -4.5%) (Actavis, presumably) for the commercialization rights to antibiotic XYDALBA (dalbavancin) in France, the U.K., Germany, Belgium, Nordic countries, certain countries in the Middle East, Canada and unnamed others. XYDALBA was approved in May 2014 in the EU for the treatment of Acute Bacterial Skin and Skin Structure Infections (ABSSSIs).
- Under the terms of the deal, Cardiome will pay Allergan a staggered upfront fee of $13M, milestones and royalties. Additional terms are not disclosed.
- Cardiome intends to launch XYDALBA in its territories this year.
- Related ticker: (TEVA -6.2%)
Wed, Apr. 6, 7:26 AM
- Although disheartened that its merger with Pfizer (NYSE:PFE) is dead, Allergan (NYSE:AGN) is bullish on its standalone profile. CEO Brent Saunders says, "While we are disappointed that the Pfizer transaction will no longer mover forward, Allergan is poised to deliver strong, sustainable growth built of a set of powerful attributes. Our pipeline is one of the strongest in the industry, loaded with 70 mid-to-late-stage programs including 14 expected approvals and 16 regulatory submissions in 2016 alone."
- Based on a preliminary review of the proposed regulations from the U.S. Treasury Department, the company believes they will not have a material impact on its standalone tax rate. Q1 earnings will be reported no later than May 10. During the conference call, management will update investors on its plans to simplify the company's operations after it divests its generics business to (NYSE:TEVA).
- Allergan will host a brief conference call this morning at 10:00 am ET to discuss its standalone prospects.
- Pfizer says it will make a decision on splitting the company's innovative and established businesses by the end of the year. It will report Q1 results on May 3. It has agreed to reimburse Allergan $150M for merger-related expenses.
- PFE is up 1% and AGN is down 1% premarket.
Thu, Feb. 11, 7:57 AM
- Teva Pharmaceutical Industries (NYSE:TEVA) Q4 results ($M): Total Revenues: 4,881 (-5.6%); Generic Medicines: 2,257 (-8.6%); Specialty Medicines: 2,114 (-5.8%); MS Specialty: 960 (-14.4%); Other Specialty: 1,154 (+2.9%).
- Key Product Sales: Copaxone: 960 (-14.4%); Treanda: 198 (-12.4%); ProAir: 148 (+23.3%).
- Net Income: 485 (-30.9%); EPS: 0.55 (-31.3%); Non-GAAP EPS: 1.28 (-3.8%); CF Ops: 1,615 (-7.8%).
- Q1 Guidance: Revenues: $4.7B - 4.9B; Non-GAAP EPS: $1.16 - 1.20; CF Ops: $1.2B - 1.3B. Full-year guidance will be released after the close of the Actavis Generics transaction.
- Shares are down 3% premarket on light volume.
Sep. 30, 2015, 12:49 PM
- Bruised and battered biotech investors get some welcome buying today as bargain hunters open their wallets. The iShares Nasdaq Biotech Index Fund (IBB +2%) is up nicely, albeit on average volume.
- Key tickers: (AMGN +1.6%)(BIIB +2.5%)(GILD +1%)(CELG +0.7%)(DEPO +12.4%)(HZNP +8.6%)(NVO +0.7%)(AGN +4.9%)(VRX +6.4%)(REGN +0.9%)(TEVA +2%)(SHPG +2.6%)
Sep. 18, 2015, 6:13 PM
- Mexico City-based generic drugmaker Representaciones e Investigaciones Medicas -- Rimsa -- is drawing interest from big pharma companies, particularly including Pfizer (PFE -1.9%), Sanofi (SNY -3%) and Abbott Laboratories (ABT -2.1%), Bloomberg reports.
- Rimsa could draw about $1B in a purchase by any of a list of suitors, which also could include Teva (TEVA -1.6%) and Takeda (OTCPK:TKPYY -1.9%).
- Healthcare spending rates in Mexico are expected to rise to be more in line with other emerging markets like Brazil and Chile. Spending is relatively low and the market is fragmented.
- Goldman Sachs is managing the sale.
Jul. 27, 2015, 12:48 PM
Jul. 27, 2015, 9:14 AM
Jul. 27, 2015, 7:09 AM
- Mylan (NASDAQ:MYL) drops 12% premarket on increased volume in response to Teva's (NYSE:TEVA) $40.5B deal for Allergan's (NYSE:AGN) generics business, dashing investors' hopes that it would pursue its hostile bid for Mylan.
- In a statement, Mylan reaffirms its interest in Perrigo. A vote on the combination by Mylan shareholders is expected to happen in the next few weeks.
Jul. 6, 2015, 12:25 PM
Jul. 1, 2015, 9:25 AM
- Thinly traded micro cap Xenon Pharmaceuticals (NASDAQ:XENE) drops 22% premarket on increased volume in response to its announcement that a Phase 2b trial run by development partner Teva Pharmaceutical Industries (NYSE:TEVA) evaluating TV-45070 (formerly XEN402) in patients with pain due to osteoarthritis of the knee failed to demonstrate a statistically significant difference from placebo.
- TV-45070, a small molecule inhibitor of the sodium channel Nav1.7 and other sodium channels that are expressed in the pain-sensing peripheral nervous system, is a topical cream being developed for the treatment of nociceptive (pain arising from nerve cell stimulation) pain.
- Top-line results from another Phase 2b study in post-herpetic neuralgia are expected in H2 2016.
Teva Pharmaceutical Industries Ltd. engages in the provision of pharmaceutical services. It operates through the following business divisions: Generic, Specialty Medicine, and Over-the-Counter (OTC). The Generic division involves the manufacture and sale of generic products such as tablets,... More
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