Analyst Note| Soo Romanoff |
No-moat Teva Pharmaceutical reported third-quarter results that included slightly lower-than-anticipated revenue with the pandemic normalization and slower traction of its migraine specialty drug, Ajovy. We view this as a reflection of the residual pull-through of COVID-19 stockpiling observed in the first quarter and stabilization of patient visits. Operational execution remains strong, and the company is tracking well on its long-term plans. There were no significant updates on the opioid and price-fixing litigation, which remains the primary overhang on the shares.