Teva Outlook Mostly Gloomy Despite New Product Push


The unveiling of 50 new products with $3 billion in potential sales failed to dispel the gloom enveloping Teva Pharmaceutical Industries, plagued by a leadership shakeup, downsizing and heavy competition for its flagship drug Copaxone.

Teva’s new line, known as New Therapeutic Entities (NTE), did not exactly set the market on fire. Share price fell 0.4 percent to $40.03 on the New York Stock Exchange, giving a market cap of $33.8 billion on Wednesday, Globes reported.

The NTE program includes current molecules in new formulations to improve a drug’s effectiveness or for new indications. Teva has 15 products in development and plans to have 50 in the coming years for the treatment of pain, Crohn’s disease, glaucoma, and other conditions. The advantage lies in reduced risk and lower cost compared with the development of new drugs.

In a report titled “Wish We Were More Excited With NTEs,” UBS analyst Marc Goodman complained of inadequate information. “While many of the spec pharma products are interesting ideas, they are mostly ideas with minimal data to even know if we have real products,” he says.

Barclays Capital analysts Douglas Tsao and Ann Trimble were unimpressed, saying, “Teva’s presentation seemed to do little to convince investors these would be meaningful commercial opportunities. Most disappointing to us is that the majority of the NTE candidates … don’t appear to be particularly novel or innovative.”