Mylan equipped to navigate choppy waters, but Teva caught in a tough spot - Barclays

Phibro Animal Health

11/06/2019 17:09

** Generic drugmakers slip after Barclays initiates coverage
with 'underweight', citing legal risks and continued uncertainty
in the U.S. generics sector
    ** U.S.-listed shares of Teva Pharmaceutical Industries
 TEVA.TA  slip 2%; Endo International Plc  ENDP.O , Amneal
Pharmaceuticals  AMRX.N  and Allergan Plc  AGN.N  also fall
between 1% and 2%
    ** Difficult payer landscape and potential legal risks to
delay future cash flow generation and recovery for U.S. generics
 companies, brokerage says
    ** Mylan NV  MYL.O , however, has the "optimal composition"
to navigate the choppy waters with an extensive biosimilar
portfolio and diversified global segments, brokerage says;
starts coverage with 'overweight', citing balanced global
exposure and limited regulatory risk
    ** Barclays expects strong growth for differentiated and
innovative specialty products and in biosimilars, where it says
a 15-fold rise is expected in the next 7 years
    ** Teva has long since vacated a leading role in the biggest
opportunity for the next decade, biosimilars, to Novartis'
Sandoz  NOVN.S  and Mylan, Barclays says
    ** Brokerage starts with 'overweight' rating on companies
with "unique products and segments," including Jazz
Pharmaceuticals Plc  JAZZ.O , Foamix Pharmaceuticals  FOMX.O ,
Pacira Biosciences Inc  PCRX.O  and Revance Therapeutics Inc
 RVNC.O   
    ** Barclays sees "solid megatrends" in the U.S. animal
health sector; starts on Zoetis Inc  ZTS.N  and Kindred
Biosciences Inc  KIN.O  with 'overweight' rating
    

 (Reporting by Manojna Maddipatla in Bengaluru)
 ((Reuters Messaging:
manojna.kalyani.thomsonreuters.com@reuters.net))