Teva (TEVA) continues to remain in a bind, and I have mentioned on many occasions why the name should be shorted. Well, things are about to get worse for Teva. Late Tuesday, Mylan (MYL) announced that it had received FDA approval for its generic versions of Copaxone (both the 20 mg/mL version and the 40 mg/mL version). This means that sales of Copaxone from Teva will be highly affected. This new problem creates another short opportunity for the stock because I don't believe that this is something Teva can easily counter.
Copaxone Worries
In a prior article I wrote on Seeking Alpha titled "Teva Receives Big Blow On Generics Pricing," I highlighted how the company was already struggling with a competing 20 mg/mL generic version of Copaxone that was launched in 2015. The way that Teva countered that problem was by switching at least 80% of the patients over to its 40 mg/mL injection of Copaxone. This time, though, Teva is in big trouble. That's because Mylan just received approval for not only the 20 mg/mL version, but it also had received approval for the 40 mg/mL version. That means Teva can no longer switch patients over to another higher dose to retain profits. In other words, Teva is stuck in the mud now, so to speak. This is very troubling, and I see further downside in Teva's stock. Which is why Teva continues to remain a good short opportunity.
