Executives at Teva Pharmaceutical Industries the world’s biggest generic drugmaker, keep dropping hints that they’re ready to make a large acquisition. Investors are taking them seriously.
After Chief Executive Officer Erez Vigodman said last month that Teva, Israel’s largest publicly traded company, would shift to an “inorganic growth” strategy, analysts churned out a flurry of research notes speculating on potential acquisition targets. As they did, investors bid up the stock price to a five-year high, part of what’s shaping up to be the biggest monthly rally in more than a year.
Teva shareholders are betting Vigodman will move forward with a deal soon to offset generic competition to its best-selling multiple-sclerosis drug Copaxoney.
“The closer we get to September, the closer they’re going to get to the finish line on completing a deal or at least announcing a deal,” said analyst Timothy Chiang, with CRT Capital Group LLC in Stamford, Connecticut.
“That’s what the markets are hoping for, and what I’m hoping for.”