Citigroup Global Markets (NYSE: C) analyst John Boris re-iterated his “buy” rating for shares of Teva Pharmaceutical Industries (Nasdaq: TEVA), with a new price target of $72.
Boris made his re-iteration on the company after an Indiana Southern District ruled in favor of Eli Lilly and Company on one issue and ruled that another matter relating to an invalidated patent had already been decided in a lower court.
The move will allow Teva to setup a “generic Gemzar launch on 11/15/10 with 180-days of exclusivity unless the CAFC upholds the ‘826 patent or LLY settles with Teva/Sun.”
Citigruop Global Markets maintained its current earnings per share for Teva, but that EPS estimate may exclude any impact from generic gemcitabine.
Boris wrote, “the sales/EPS benefit to Teva from a 11/15/10 gemcitabine launch assumes Teva reaches 70% market share at a 30% discount during the 180-day exclusivity period. Thereafter, we assume Teva experiences competition only from Sun Pharma/Caraco leading to a 60% price discount, with Teva’s market share reduced to 60%.”
