- Teva Pharmaceuticals received 20 'buy' recommendations according to data collected by Bloomberg---the most of any biopharma company on U.S. exchanges. Allergan, by comparison, only had 19.
- Analysts consider Teva a good buy because it has a P/E ratio of 11.04, which is astoundingly low compared with the industry average.
- Teva is nearing completion of a $41 billion acquisition of Allergan's generic drugs.
At a time when drug price scrutiny is increasing, Teva appears spared from critical market analysis. In addition, concerns about the expiration of patents on Teva's $4 billion-per-year multiple sclerosis (MS) drug have eased. This is mainly because generic competition has not entered the market as forcefully as previously anticipated. Back in April, the FDA approved Momenta Pharmaceuticals' generic version of Copaxone, but there have not been any further approvals.
When the deal between Teva and Allergan was announced in July, the market shot the stock up to a new high. The stock has dropped since then, leading analysts to cite Teva's value relative to price and potential. Investors are taking note of the flurry of recommendations, putting Teva in enviable year-end position.