TEVA is no junior biotech company in search of new medicines and miracle cures. Instead, TEVA is a powerhouse in global trade and a top-notch investment.
Regardless of a slowdown in the world economy, most analysts expect worldwide sales of generic drugs to increase because generics save consumers money. That's why TEVA Pharmaceutical Industries is considered the top defensive stock for 2007 from an international trade perspective.
TEVA is a diversified drug company. TEVA also makes proprietary branded drugs like best-selling multiple sclerosis treatment Copaxone® and sells active pharmaceutical ingredients (API) to drug manufacturers around the world. Another TEVA branded drug is Azilect®, the first once-daily oral treatment for Parkinson's disease.
TEVA's financial results for third quarter ending September 30, 2006 were stellar. Overall, quarterly net sales rose 74% to $2,286 million while net income increased 127% compared to the same period of 2005. Fully diluted earnings per share (EPS) jumped 85% to $0.74. The company's gross profit margin reached 55.2% in the quarter, up from 47% in the prior year.
North American pharmaceutical sales were up 87% in the latest quarter, benefiting from TEVA's introduction of 22 new products. Pharmaceutical sales in Europe increased 36% due in part to higher generic sales from 34 product launches across nine countries. International pharmaceutical sales rose 149% notably due to the addition of new markets in Latin America and Central and Eastern Europe.
After TEVA announced its stellar quarter on November 7, its stock price has stuck around the $32.80 level down from $36 in October. As long as TEVA continues to grow its revenues and earnings consistently at about 20% or less, TEVA offers considerable upside in both the global generic drug marketplace and in terms of its stock price on NASDAQ.
Currently TEVA is the 14th largest component of the NASDAQ 100 Index, ahead of the likes of Starbucks, Costco and Adobe Systems.
Note: Suite101 does not offer investment advice. Instead, we seek to educate and inform our readers by writing about the latest trends in world trade. Armed with these insights, you are in a much better position to make your own decisions. We encourage you to add your thoughts to our analysis by starting a discussion below.
