Sun: Looking beyond the results
Shlomo Greenberg
29.07.2001 17:21
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What we’ve been saying is not, of course, applicable to the pharmaceuticals and generic industry. There’s no lack of demand in this sector. Nor are there any surplus inventories. In this sector, it’s business as usual.
Taro Pharmaceutical Industries (Nasdaq: TARO) is still going up. The company is planning to take advantage of the share price to raise $250-300 million. If the issue goes well, and there’s no reason to think it won't, the company’s management deserves a pat on the back. Not because of the share, although this, too, is important, but because of what actually happened in the company in the past two years. Taro will hold an issue at a high company value, raising a sum that will allow the company to ease its way into a higher level.
We’ve nearly forgotten to tell you that the share rose another 5.5% to $47.15, the new price after the split.
Teva (Nasdaq: TEVA) has also done well recently, climbing 21% since the beginning of the month to $73.05 on Friday. Look what happened over the past year. Would anyone use the phrase “Teva did well, also” after talking about Taro a year ago? Would anyone have mentioned the two in the same breath a year ago? Taro is still a very far cry from Teva, but what happened shows that when it comes to Wall Street and to the drug industry, anything is possible |
