Teva reports matched market forecasts in the sales line, with the profit line being about 4% higher than the forecasts. “It is difficult to relate to the quarterly results from a comparative point of view, since this quarter has absorbed the full impact of the outbreak of the corona virus, especially in the American market,” he said. Merav Fischer-Sharoni, Pharma Analyst at Leumi Partners, Which in response to the publication of Teva reports raises the recommendation per share from “missing return” to “market return”, at a target price of $ 12 per share – below the current market price.
According to Fischer-Sharoni, “As we observed, the trend of pre-closure equipping, which characterized the first quarter of the year, was partially offset this quarter, probably mainly due to traffic restrictions, and ‘inventory surpluses’ among customers. The company’s main growth was relatively moderate compared to pre-corona forecasts, especially with the AJOVY drug, despite the launch of the automatic syringe, which should bring the drug in line with its competitors. Of the AJOVY drug, so growth rates later in the year may be higher.
“Teva presented a net cash flow of $ 582 million, which allowed a certain reduction of the net financial debt, to a level of $ 23.9 million. . The company reaffirmed its forecast for 2020, despite erosion in the second quarter.
“Teva’s main problem as of today remains its financial situation, and in light of two significant legal cases, which are conducted simultaneously in the US, and may impose substantial fines on Teva, the uncertainty will continue, and the company’s risk profile remains very high,” Fischer-Sharoni concluded.
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