Analysts today responded to the third quarter financial results of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) published today.
Leader Capital Markets analyst Yoav Burgan noted that strength in all of Teva's innovative sectors reflected a gross profit margin of over 58%. He said that most of Copaxone's growth came from winning market share, and that it had a 38% share of the US multiple sclerosis treatment market and 30% of the global market.
Bank Hapoalim analyst Gilad Sarig said that some multiple sclerosis patients who take Tysabri may have switched to Copaxone. He also attributes the increase in sales to seasonal stocking up of inventories. "Every coin has two sides: reliance on a large product involves risk, but Teva is squeezing the Copaxone lemon to the last drop, providing a very strong base for 2010," he said.
Clal Finance analyst Gal Reiter notes Teva's cash flow, but warns that its R&D spending continues to be low, at 5.5% of revenue. She also notes that while the company's sales mix leans toward profitable products, its gross profit margin was less than in the preceding quarter.
Psagot Investment House analyst Limor Gruber says that, despite some disappointment in the results, Teva is a source of stability in these times of renewed uncertainty about economic developments. She adds that the company's strong cash flow continued to serve its loan repayments, even as it strengthens the company's financial position, possibly in preparation for another acquisition.
IBI Investment House analyst Natalie Gotlieb says that despite the effect of the strong dollar, Teva's financial report was good. She also notes the strong growth in the company's product pipeline, which was larger than all its competitors, thus ensuring continued sales growth in the US.
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2009
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