Teva management sees bottom of generic pricing cycle, says Jefferies
Teva believes that we are approaching the bottom of the generic drug pricing cycle, Jefferies analyst David Steinberg tells investors in a research note after meeting with the company's CEO and CFO in Israel. Management sees a flattening price erosion curve and does not expect that there will be further consolidation amongst buying consortiums, says the analyst. He adds that while the U.S. market will likely show little to no growth, Teva is focusing on international markets. Management believes long-term trends will allow single digit annual revenue growth for the next 20 years, writes Steinberg after the meeting. Further, the analyst points out Copaxone continues to erode at a slower rate than most observers expected and that Teva expects this to continue. He keeps a Hold rating on Teva shares with a $21 price target.