Teva Whats Next?

Teva Pharmaceuticals (NASDAQ:TEVA) reported Q4 and year end earnings. Quarterly sales up 63%. Annual adjusted EPS up 45%. The stock has still not returned to its 52 week highs. But trading in January has pushed to price up rather nicely.

After a boomer year what is left? Even management did not attempt to create growth expectations. The press release contained a very short comment about the future.

“2007 Outlook - The Company expects net sales in 2007 to exceed $ 9 billion and fully diluted earnings per share to be in the range of $2.07 to $2.19.” The EPS guidance is actually down from just reported results.

This is in stark contrast to a previous comment about drugs awaiting FDA approval.

This is in stark contrast to a previous comment about drugs awaiting FDA approval

“As of February 1, 2007, Teva had 162 product applications awaiting final FDA approval. Collectively, the brand products covered by these applications had annual U.S. sales of approximately $92 billion. Teva believes it is the first to file on 42 of these applications relating to products whose annual U.S. branded sales are over $36 billion.”

This could be a management group quietly wondering if the market is going to get it. On one hand they know that they cannot promise a repeat. No one would believe the enormous scope. On the other hand Israel Makov, President and CEO comments that

“Teva is ideally positioned to play an even larger role in the health care industry, and capture an even larger share of the opportunities that this industry offers."

The recent price increase may be more than just anticipation of good quarterly results.