Yeah ....but so are Bell Potter and their views were posted by...

Yeah ....but so are Bell Potter and their views were posted by Benelong.
03/06/16Time:15:28:38Post #: 17946056

With TEVA, from my perspective , worst case scenario (which I dont believe  will transpire based , remarkable,  astonishing results to date, understanding the hindsight of what it means when there is a "hockey stick" impact in recruiting + 121 locations now updated on Clinical trials.com and on potential contributions to GP by Revacsor chf alone - see current Teva GP ), if they were to concentrate on Generics... if would be unconscionable to think they wouldn't transfer the ceph/teva MPC licences for $$$$.

Via Lonza manufacturing, I think the Cogs to Teva are b/w 30-35%, thereby producing a GP margin of ~70%  to ~65 %....no comparison to generics GP margin of 46%. Also, in good time, the cogs  come down with scale.

A tale of two cities (extract from article)
Teva is a story of two business models: a generic business that is diversified across many drugs but is less profitable, and a specialty drug business that is more profitable but also heavily dependent on the success of the multiple sclerosis drug Copaxone.

	Column 1	Column 2	Column 3	Column 4	Column 5
0	Division	Revenue	Gross margin	Segment profit	Revenue growth/decline year-over-year
1	Generic	$2.17 billion	46%	$584 million	-17%
2	Specialty	$2.15 billion	86.9%	$1.19 billion	10%

Q1 2016 numbers. Source: TEVA Pharmaceuticals
As you can see, the gross margins on those drugs make a big difference. And of the $2.15 billion in revenue from specialty drugs, about half came from Copaxone, which sold just over $1 billion in the first quarter. Profit is an even more telling story, with $808 million (or 68% of the Specialty segment's total profit) provided by Copaxone.

GLTAH.