BMY - Teva: Reasons To Avoid It In Favor Of Innovative Biotechs
Introduction - Teva (TEVA) versus branded biotechs
TEVA reported Q4 and full-year numbers last week, and the stock sank sharply, with its ADS closing at $17.98 Friday. Using the 1.10 B fully diluted shares the company guided for the present period on the conference call, that puts its basic market cap at almost $20 B. However, the CEO noted in his prepared remarks that the company has $27.1 B in net debt. Because valuing TEVA using either GAAP or a complicated non-GAAP earnings metric is difficult, debt-adjusted market cap versus free