Teva Pharmaceuticals Just Made a Big Announcement, but Is It a Buy?
On May 18, Teva Pharmaceuticals (NYSE: TEVA) announced that it was planning to execute a strategic pivot that would return the company to growth after a long period of stagnation. Between the upcoming fruits of its biosimilar generic medicines pipeline and its anticipated investments in expanding its pipeline assets, management is hoping to mark a turnaround point within the next few years and meet its financial targets for 2027.
But upon closer inspection, much of Teva's plan calls for doing more of the same. So is Teva approaching an inflection point, which might make it worth buying, or is it more likely to continue languishing? Let's check it out.
Generally, generic drug manufacturers are companies that enjoy stable demand for cheaper copies of critical medicines. This, in turn, leads to stable cash flows that are returned to shareholders via a conservative dividend -- making for a low-volatility stock that's relatively low risk.
Source Fool.com
