Buy, Sell, or Hold This Generic Pharma Titan?

Teva Pharmaceuticals (NYSE: TEVA  ) is the world's largest generic-drug maker. Somewhat ironically for a company that specializes in generics, its business is struggling at the moment as its own blockbuster patent-protected drug, Copaxone, just lost its patent protection in the U.S.

Two teams of competitive pharmaceutical companies with generics businesses are launching their own version of Copaxone as Teva's patent expires. One team consists of Mylan (NASDAQ: MYL  ) and India's Natco, while the other is driven by Momenta Pharmaceuticals (NASDAQ: MNTA  ) and Novartis (NYSE: NVS  ) .

Those partnerships are willing to take on Teva with their own versions of Copaxone despite Teva's own incredibly strong generics business. That's a clear sign that they believe there's still some profit to be had from the drug, even as its patent-granted exclusivity expires.

Still, Teva's core generics business remains profitable, and it was that generics business that first made Teva an attractive pick for the real-money Inflation-Protected Income Growth portfolio. In the slideshow below, portfolio manager Chuck Saletta reviews Teva in light of the Copaxone patent loss and determines whether he'd be willing to buy more, hold on, or part ways with the generic pharmaceutical giant.

Teva Pharmaceuticals: Buy, Sell, or Hold? from The Motley Fool.

Generics drive consistency, but innovation in health care drives profits
Teva's lasting strength comes from its generics business and the reality that people will always need medication and want the lowest costs. Still, the biggest profits in the industry come from investing in disruptive technologies before they hit it big.

Right now, there is a product in development that will revolutionize not how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multibagger returns you will need The Motley Fool's new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, click here. To see the iPIG portfolio's online tracking spreadsheet, click here.

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Chuck Saletta

Chuck Saletta has been a regular Fool contributor since 2004. His investing style has been inspired by Benjamin Graham's Value Investing strategy. Chuck also can be found on the "Inside Value" discussion boards as a Home Fool.

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Related Tickers

9/1/2015 4:01 PM
TEVA $63.18 Down -1.23 -1.91%
Teva Pharmaceutica… CAPS Rating: *****
MNTA $18.89 Down -0.62 -3.18%
Momenta Pharmaceut… CAPS Rating: *****
MYL $48.29 Down -1.30 -2.62%
Mylan CAPS Rating: *****
NVS $94.68 Down -2.54 -2.61%
Novartis CAPS Rating: ****