Teva's Net Profit Falls Due To Poor US Generic Drug Sales

BMI View: We remain positive about Teva Pharmaceutical's short- and medium-term future as the patent cliff approaches and austerity measures and rational prescription increases generic drug sales in developed states. However, falling sales in the US have caused BMI to question Teva's generic drug business model, which seems overly dependent on exclusivity periods to secure sales. Furthermore, since oral multiple sclerosis drug laquinimod posted unimpressive trial results, some investors have lost faith in Teva's strategy and its share price has fallen sharply in 2011.

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