Globes (IL): Teva close to major acquisition - report
2015-03-29 19:32:11.399 GMT
Globes, Tel Aviv, Israel
March 29--Wall Street analysts believe that Teva
Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) is very
close to making a major acquisition that may be announced by
September, according to a report by "Bloomberg" on Teva.
The report was published in the US, following hints
dropped by Teva executives in recent weeks, among them CEO Erez
Vigodman, that Teva was considering acquisitions. The Teva
share is only 4.8% below its all-time high on Wall Street.
Vigodman said last month that Teva was ready to switch to
a strategy of inorganic growth, following a long period in
which it had concentrated on defending its Copaxone patent and
substantial cost cutting measures designed to position the
company for the day after Copaxone. His statement was warmly
received by investors, who pushed the share up to its highest
level in the past five years.
"The closer we get to September, the closer they're going
to get to the finish line on completing a deal or at least
announcing a deal," CRT Capital Group analyst Timothy Chiang
told Bloomberg. "That's what the markets are hoping for, and
what I'm hoping for."
Teva has already managed to transfer 60% of its Copaxone
patients to its new version of the drug, administered by
injection three times a week, instead of the old version, which
is administered daily. The Teva share has surged 8.7% this
month.
"Our strong focus during 2014 was on getting our house in
order first, solidifying the foundation, developing the
cylinder that will fire for us in years to come," Vigodman said
in a February 5 conference call with investors. "We are
reorienting the direction during 2015 towards inorganic moves
as well."
JP Morgan says that Teva has over $10 billion in debt
capacity to spend on acquisitions and could go after Mylan
Inc., which agreed to buy Abbott Laboratories' generic drug
unit last year. Wells Fargo, on the other hand, believes that
this is unlikely.
2015-03-29 19:32:11.399 GMT
Globes, Tel Aviv, Israel
March 29--Wall Street analysts believe that Teva
Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) is very
close to making a major acquisition that may be announced by
September, according to a report by "Bloomberg" on Teva.
The report was published in the US, following hints
dropped by Teva executives in recent weeks, among them CEO Erez
Vigodman, that Teva was considering acquisitions. The Teva
share is only 4.8% below its all-time high on Wall Street.
Vigodman said last month that Teva was ready to switch to
a strategy of inorganic growth, following a long period in
which it had concentrated on defending its Copaxone patent and
substantial cost cutting measures designed to position the
company for the day after Copaxone. His statement was warmly
received by investors, who pushed the share up to its highest
level in the past five years.
"The closer we get to September, the closer they're going
to get to the finish line on completing a deal or at least
announcing a deal," CRT Capital Group analyst Timothy Chiang
told Bloomberg. "That's what the markets are hoping for, and
what I'm hoping for."
Teva has already managed to transfer 60% of its Copaxone
patients to its new version of the drug, administered by
injection three times a week, instead of the old version, which
is administered daily. The Teva share has surged 8.7% this
month.
"Our strong focus during 2014 was on getting our house in
order first, solidifying the foundation, developing the
cylinder that will fire for us in years to come," Vigodman said
in a February 5 conference call with investors. "We are
reorienting the direction during 2015 towards inorganic moves
as well."
JP Morgan says that Teva has over $10 billion in debt
capacity to spend on acquisitions and could go after Mylan
Inc., which agreed to buy Abbott Laboratories' generic drug
unit last year. Wells Fargo, on the other hand, believes that
this is unlikely.
