Teva's Lofty Goals Seem Attainable (TEVA)

Teva Pharmaceutical (NASDAQ: TEVA – News) has some pretty loft goals for itself at its Investor Day presentation.  If you trust the company’s history and its pipeline of candidates under trials and under pending FDA review, these goals are attainable.

Teva has presented the results of its strategic review and identified its growth and long term goals of doubling the size of its business by 2012, and generating revenues of $20 billion and net income margins exceeding 20%.

What is both interesting and intriguing about Teva is that while it has its Copaxone for MS, it has become essentially the largest clearing house for generics out there.  Regardless of who wins the US presidential election, all indications point to generic drugs winning in a world where Big Pharma drug companies, and even some biotechs, have been under fire for pricing.

Teva’s current market cap is just over $37 Billion. Teva had already given 2008 and 2009 guidance that is in-line with today’s growth, and it also recently bumped up its dividend.  At the time, Teva said expected net sales for 2008 to be roughly $10.75 billion with earnings between $2.60 to $2.75 on non-GAAP EPS. For 2009, it had also reiterated guidance of greater than $3.00 EPS.

Teva shares are up almost 1% this morning at $48.35 and the 52-week trading range is $34.52 to $50.00.  Analysts have an average price target of just under $52.00 on the stock.

Jon C. Ogg
February 21, 2008