TEVA - Embedded Expectations Analysis - 2019 06 10
Teva Pharmaceutical Industries Limited (TEVA:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 17.1x Uniform P/E, implying bearish expectations for the firm. Furthermore, management has concerns about their AJOVY launch, revenue and patient growth, and generics businesses.Specifically, management may be exaggerating the progress of the AJOVY launch in Europe, the efficacy of AJOVY in treating migraines, and the advantages of being first-to-launch. In addition, they may lack confidence in their ability to manage site consolidation costs, meet operating profit targets, and sustain growth in ProAir revenue, cash flows, and AUSTEDO patient counts. Also, management may be exaggerating the stabilization of their global generics businesses, the strength of their generics pipeline, and the progress of their restructuring efforts. Finally, they may lack confidence in their ability to uphold European patents, and may be concerned about further COPAXONE market share declines.
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