Deutsche Bank Offers Quick Thoughts On Teva Pharmaceutical's Generic Nexium

In a report published Tuesday, Deutsche Bank analyst Gregg Gilbert reiterated a Buy rating and $65.00 price target on Teva Pharmaceutical Industries Ltd. (NYSE: TEVA).

In the report, Deutsche Bank noted, “TEVA announced a final approval for its generic version of Nexium, a $2bn product (reported US sales; IMS sales are ~$6bn) marketed by AZN for the treatment of gastroesophageal reflux disease (GERD). While we cannot predict when other generic companies will secure approvals, we see this as a significant sales and EPS opportunity for TEVA in 2015 and hopefully beyond. At a 60% discount and 40% share, annualized sales and EPS power (assumes no reinvestment) could approximate $290mn and $0.11, respectively (assumes a 40% pre-tax margin). We are not changing our model now but this news makes us more comfortable in TEVA's potential to exceed estimates in 2015.”

Teva Pharmaceutical closed on Monday at $59.00.