Thesis
Teva (TEVA) is likely to report lower than expected results. Primary reasons are continued pricing pressure in the generic market as well as pricing pressure on the company’s No. 1 drug Copaxone. To be sure, this assessment does not include any competition from Mylan as that will only be visible in the 4Q17.
Introduction
There’s been much ado about Teva. The company has too much debt and is experiencing pricing pressure. On top of that, new competition for its No. 1drug Copaxone has arrived. On the other hand, the current valuation suggests that Teva is worth no more than Actavis. This could very well be deemed silly. Investors also are asking whether the soon to be CEO can turn the company around.
