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Teva Pharmaceutical Industries Ltd ADR TEVA

Morningstar Rating
$13.44 −0.06 (0.44%)
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Company Report

Teva: Biosimilar to Humira Finally Seals US Approval; Looks to Be Best in Class in a Crowded Market

No-moat Teva Pharmaceuticals announced on Feb. 23 that Simlandi, its biosimilar to Humira (adalimumab), has received US Food and Drug Administration approval with an expected imminent launch date. Simlandi is approved for a several indications, including the treatment of rheumatoid arthritis, psoriatic arthritis, and Crohn’s disease. Simlandi was developed and manufactured by Alvotech, while Teva is responsible for commercialization. Teva entered into a partnership with Alvotech, a biologics manufacturer specializing in biosimilars, in 2020; the two firms have a number of other biosimilars in the pipeline. We maintain our fair value estimate of $13.50 per share for Teva.

Price vs Fair Value

TEVA is trading at a 0% discount.
Price
$13.44
Fair Value
$49.30
Uncertainty
Very High
1-Star Price
$55.18
5-Star Price
$2.94
Economic Moat
Bqgf
Capital Allocation
Nnxdgwmt

Bulls Say, Bears Say

Bulls

New products including Ajovy, Austedo (daily and extended release), and Uzedy will fuel Teva’s top and bottom lines as their adoption increases.

Bears

The majority of Teva's business lies in generic and off-patent branded drugs, which face price and volume pressures that will be exacerbated as regulatory actions and other players in the drug supply chain continue to exert force.

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News

Trading Information

Previous Close Price
$13.50
Day Range
$13.2513.62
52-Week Range
$7.0913.62
Bid/Ask
$13.13 / $13.35
Market Cap
$15.07 Bil
Volume/Avg
14.0 Mil / 9.6 Mil

Key Statistics

Price/Earnings (Normalized)
5.25
Price/Sales
0.95
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Teva Pharmaceutical Industries, based in Israel, is the leading generic drug manufacturer in the world. Teva derives half of its sales from North America and makes up a high-single-digit percentage of the total number of generic prescriptions in the U.S. It also has a significant presence in Europe, Japan, Russia, and Israel. Besides generics, Teva has a portfolio of innovative medicines and biosimilars in three main therapeutic areas: central nervous system with Copaxone, Ajovy, and Austedo; respiratory with Qvar and ProAir; and oncology with Truxima, Herzuma, and Bendeka/Treanda. Teva also sells active pharmaceutical ingredients, offers contract manufacturing services, and owns Anda, a U.S.-based generic and specialty drug distributor.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Mid Value
Total Number of Employees
37,851

Competitors

Valuation

Metric
TEVA
NVS
RDY
Price/Earnings (Normalized)
5.2514.9720.47
Price/Book Value
2.014.473.97
Price/Sales
0.954.573.86
Price/Cash Flow
10.4414.6215.72
Price/Earnings
TEVA
NVS
RDY

Financial Strength

Metric
TEVA
NVS
RDY
Quick Ratio
0.540.881.80
Current Ratio
1.021.162.55
Interest Coverage
0.3910.9446.52
Quick Ratio
TEVA
NVS
RDY

Profitability

Metric
TEVA
NVS
RDY
Return on Assets (Normalized)
6.70%12.15%15.57%
Return on Equity (Normalized)
39.00%27.10%21.70%
Return on Invested Capital (Normalized)
13.54%17.72%20.10%
Return on Assets
TEVA
NVS
RDY
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