Boston, MA 06/03/2014 (wallstreetpr) – Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is trading near its 52 week high. Seeing the present conditions linked with Copaxone, it is wise to sell the stock or have some cushion by buying the put options. Goldman has warned of a sell off on Teva due to the problems associated with its most selling drug Copaxone. Goldman has changed their initial rating of sell at the start of the year. The bull run of the company forced them to change the stance of sell the company. However, they are back again with the cautionary view on the stock. They are advising the investors to stay prepared with some protection against the sharp fall in the stock.
The growing concerns
The Israel based Teva, Petach Tikva, is the world’s largest generic drug maker. It has also outperformed the index by rising by more than 29% this year. In the present scenario, it seems better to buy the put options on the stock. The company is enjoying a bull run but the stocks can plunge by as much as 10% if the other companies like Mylan Inc (NASDAQ:MYL) comes up with the generic version of its best selling MS drug Copaxone.
Copaxone is significant in Teva’s outstanding performance. It contributes 21% in the company’s total revenues. Till this time, Teva has successfully stopped the coming up of cheaper generic versions in the market. On the other side, it is busy shifting patients to another longer acting version of treatment. The longer version doesn’t have any fear of competition until 2030. The stocks of Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) are witnessing a great volatility due to the threats faced by its most selling drug Copaxone.
There might be some delays in the launch of generic version of treatment by Mylan, but sooner or later it will find a way in the market. It is best to book the profits at this time and stay at sidelines till the time picture gets clear.