Tag Archives: healthcare
Teva Pharmaceutical Industries Ltd. (TEVA) is the world’s largest generic pharmaceutical manufacturer with operations in 60 countries. Teva’s outlook remains bright from the long-term perspective; however, investors need to be aware of the short-term pressures faced by TEVA.
Strong Return for Shareholders
In 2012, Teva’s board increased its quarterly dividend by 15%, and the company had repurchased about $0.5 billion of stock in Q4 for a total of around $1.2B in 2012. Over $2 billion (58% of free cash flow) was returned to shareholders in 2012 through dividends and share repurchases.
The management continues to emphasize on profitability and sustainable profitable growth by leveraging an aggressive business development strategy to build a robust pipeline and expand the company’s core franchises.
Copaxone continues to lead the market in sales and market share with $4 billion in annual sales of approximately $1.1 billion for Q4. Despite the potential approval and launch of the competitive product in the multiple sclerosis space, the management expects Copaxone to maintain its market leadership position. However, investors need to be aware that Copaxone will lose patent protection in 2015. More competitions are expected from other MS drugs, such as like Novartis (NVS)’s approved Gilenya and Biogen Idec (BIIB)’s BG-12, which is currently under review.
In this articles, three solid, large-cap biotechnology stocks with strong fundamentals are presented, including Gilead Sciences, Inc. (GILD), Amgen Inc. (AMGN), and Celgene Corporation (CELG). All three stocks have a strong ROE and a low beta and are great long-term holdings.
Gilead Sciences, Inc.
Gilead Sciences, Inc., with a market cap of $63.78B, is a research-based biopharmaceutical company, which develops and markets therapies to treat life-treating infectious diseases with the core portfolio focused on HIV, liver diseases, such as hepatitis B and C, and cardiovascular/metabolic and respiratory conditions. GILD was down 0.85% and closed at $42.09 on February 25, 2013. GILD had been trading in the range of $22.33-$43.35 in the past 52 weeks. GILD has a very low beta of 0.46.
On February 19, 2013, Credit Suisse upgraded GILD from Neutral to Outperform. Analysts have a mean target of $46.96 and a median target price of $46.00 for GILD. Analysts are expecting an EPS of $0.50 with revenue of $2.57B for the current quarter ending in March, 2013. For 2013, analysts are predicting an EPS of $2.02 with revenue of $10.59B, which is 9.20% higher than 2012.