From the look of Friday in some of the worst drug pipelines, I felt that it would be only prudent to deliver a blow of eye in possibly the strongest pipeline as the rock in the business. I know that some of you will look at this choice with disdain or perhaps place an asterisk next to the company, but the teva Pharmaceutical (Nasdaq: TEVA - News) is really in an own class.
Teva Pharmaceutical is a generic Vulture - waiting in the corner to feast of patents out large pharmaceutical companies. The company has approximately 1,250 drug in its portfolio and countless others waiting for FDA approval. This is not to say that Teva brings its own drugs on the market, because it has developed Copaxone for the treatment of the sclerosis and Azilect for Parkinson's disease. But the main objective of the company is at the corner of the market for generic drugs in the world, and so far, he did exactly what that.
Since the purchase of Barr Laboratories, three years ago, income has exploded. The company reported a shade over 11 billion in revenues in 2008, and current projections call for the company Rake in more than 20 billion dollars in sales in 2012. Although most of the competitions of Teva is private, Teva probably brings more each year ranbaxy International, Novartis' (NYSE: NVS - News) division of drugs generic sandoz Internationaland products pharmaceutical Watson (NYSE: WPI - News) combined!
Teva is commercial within 8 Advanced times earnings, which makes it in the same territory "cheap" as eli lilly (NYSE: LLY - News) and AstraZeneca (NYSE: AZN - News). However, as I pointed out the last week, the two companies are scheduled to potentially lose a large piece of their revenue stream of patent expirations over the next four years.
Teva, a on the other hand, Copaxone, which represents for $ 3.3 billion in annual sales, under patent until 2014. Even a worst case scenario which sees several competitors after 2014 is not a potential disaster for Teva, which has literally thousands of generic applications currently pending approval.
Teva is a monster which produced 3.43 billion of $ in cash free flow in the 12 month end and pays a dividend approaching slowly 2%. Investors hammered the stock last week after its experimental drug Laquinimod takes place behind biogen idec(Nasdaq: BIIB - News) multiple sclerosis drug BG-12. Yet again, disappointing but not dirty news.
With the stock of more than 25% from its high of 52 weeks on some news temporarily disappointing, I feel that Teva deserves a second look to shareholders because this pipeline is also waterproof to fluctuations as it gets. Find a pipeline that can grow at a rate in double digits with minimal risk is simply too good to pass.
Would pass on Teva at these levels or is the stock of its weight in generic drugs? Express your opinion in the comments section below and add Teva Pharmaceutical and your own custom stock portfolio to my watchlist.
Contributor Fool Sean Williams has no material interest in all the companies mentioned in this article. He would like to remind you not to forget our friends in the Japan that could always use a helping hand. You can follow him on the selections under the name of the TMFUltraLong screen. Teva Pharmaceutical and Novartis are Motley Fool Global Gains peaks. The fool is the owner of the shares of Teva Pharmaceutical. Try our services Foolish newsletter free of charge for 30 days. Us Fools can not all hold the same views, but we believe that treat a wide range of ideas makes us better investors. The Motley Fool has a policy of disclosure which is always and never generic.
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