Sometimes, using equity to grow can come back to bite you. Teva Pharmaceuticals'
Excluding one-time charges, though, the acquisition seems to be benefiting the generic-drug maker more than it's hurting it. Revenue was up 25% during the quarter, thanks to the acquired products, and adjusted EPS were up 16% year over year. The Barr acquisition should really show up in the bottom line next year. The company is guiding for 2010 adjusted EPS to be 34% higher at the mid-range of projections.
Teva may be the world's largest generic-drug maker, topping generic sales by Novartis
Which begs the question: What will Teva buy next? The company has made no secret of its plans to continue its extrinsic growth. But will it continue down the path of generic-drug acquisitions, or move further into the higher-growth branded-drug arena? The rumor farm isn't much help. There are hints that the company's interested in buying Protalix BioTherapeutics
Whatever Teva buys, as long as the acquisition starts adding to the bottom line in the first year after the acquisition, investors should be happy.