Headquartered in Israel, Teva Pharmaceuticals Industries Ltd. (TEVA) is the world’s largest generic pharmaceutical manufacturer. This global company also develops, manufactures and markets branded drugs, altogether with pharmaceutical ingredients in North America, Europe and ROW markets. Now, word is out that the current time is one of transition for Teva. The question is then: Will the company be able to make it through this "transition" for the best or the worst?
Teva has reported a 1.4 percent decline in revenues in its second quarter and is expected to be facing macro-headwinds in the future. These include EU pricing pressure, a higher cost base, fewer generic product launches compared to 2012, and potential new competition for branded products as one of its branded products goes generic and another – Copaxone, a drug for the treatment of multiple sclerosis – might as well. Copaxone makes up about half of Teva’s branded drugs segment, with about $4 billion in sales for 2012. Recently, the U.S. Federal Court of Appeals has been delivering unfavorable rulings regarding the validity of certain Copaxone patents. In this context, generic competition could materialize sooner than expected by the company – May 2014. Continue Reading »