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Tuesday, October 13, 2009
Dave Mock :: Townhall.com Columnist
A Big Upgrade for Teva Pharmaceutical
by Dave Mock
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Will the Dems' health care Christmas Present to America be an improvement or detriment to our health care system?


Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks -- and the track recordsof the companies behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPSto monitor the collective opinions of more than 140,000 members, many of whom demonstrate better investing insight than published analysts do.

After falling back to a four-star rank, where it sat for the past several months, Teva Pharmaceutical (Nasdaq: TEVA) has finally seen enough top-performing CAPS members turn bullish to reclaim its coveted five-starstatus. A total of 1,472 members have given their opinion on the generic drug maker, with many of them offering analysis and commentary explaining the recent optimism.

Many CAPS members see a big future ahead for generic drugs in general and think they will play a big partin saving health-care costs. Many drugmakers like Pfizer (NYSE: PFE), Bristol-Myers Squibb (NYSE: BMY), and Eli Lilly (NYSE: LLY) will be peering over a patent cliff in upcoming years, and some, like GlaxoSmithKline (NYSE: GSK), have already taken the leap. Teva is picking up the pieces as the world's largest generic drugmaker with a successful history of aggressively launching drugs. The company saw a 20% revenue increase in the second quarter, and it plans to keep the pressure on with the launch of a couple dozen more generics by 2010.              

Its multiple sclerosis drug Copaxone faces a generic threat of its owncoming from Mylan (Nasdaq: MYL), Momenta Pharmaceuticals , and Novartis ' (NYSE: NVS) Sandoz, which could keep the company's lawyers busy defending its patents. But Copaxone reached record in-market sales in the second quarter, and a recent study found that the drug also reduces the likelihood of patients progressing to full-blown MS, which may lead some to start treatment early. And with some of its acquisitions last year, Teva picked up several branded drugs as it continues to diversify into that market.

Do you think Teva Pharmaceutical deserves its five-star status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the companyand check out all the information and opinions the community offers, absolutely free.

This article was originally published as A Big Upgrade for Teva Pharmaceuticalon Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.

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About The Author

Dave Mock is a Motley Fool contributor.

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