The pharmaceutical industry is sometimes regarded as a deeply dishonest one, trying to capitalize on people’s misery by selling overpriced drugs.
For binary options traders, some of these companies present an excellent opportunity to make some profits and Teva Pharmaceuticals is one of them.
As a leader in the manufacturing of generic drugs, this company has experienced ups and downs over the last couple of years. Short and medium term forecasts are encouraging for Teva, but those who hope to maximize their profits should make their move before 2015. Find out why.
Global generic sales to increase by 78%
If we are to trust the Institute for Healthcare Informatics these are the figures expected for the next three years and the inevitable effect would be a surge in Teva stock. Being at the forefront of manufacturing and selling generic drugs, this company will get the lion’s share and it is worth buying their stock while it is still undervalued. They are expected to present a new research and product portfolio for 2013 and if we are looking at past performance, most of the news will be positive.
Binary options traders can’t afford the luxury of holding on to stock and see it gain wealth, but can definitely enjoy some short term gains.
Consumer confidence remains a critical factor and with Teva offering some of the most tempting figures for dividend investors, the confidence levels are expected to stay high. At the offset that the company will go through a tough patch and the dividends drop or are completely abolished, this will have a negative effect on the stock price. For the time being Teva’s free cash flow suggests that the most likely direction for the dividends is upwards, so there are no reasons to panic.
Copaxone patent to be lost in 2015
It is somehow ironic how a company that is the leading generic drug maker by revenues can be crippled by a patent expiring in 2015. Teva has a couple of branded drugs of its own and one of the most profitable ones is Copaxone which was responsible for every 1 in 5 drugs sold this year. Generic drugs will remain an important source of revenue for Teva but the fallout of Copaxone patent expiration can’t be dismissed.
Binary options traders don’t need to bother themselves with this just yet, as there is plenty of time until 2015 to evaluate the possible impact. If the IMS is right and the sales of generic drugs increases by 78%, the stock will keep rising despite the aforesaid issue. Given the goal of any investor is to buy low and sell high, this is the perfect time to buy Teva or purchase call options, depending on trading preference.
Bottom Line?
Teva Pharmaceutical showcases some solid figures and the prospects for future growth are encouraging, despite the looming threat of Copaxone patent expiry.
