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Biotech / Medical : Teva Pharmaceuticals
TEVA 31.22-0.4%3:59 PM EST

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To: Doug who wrote (235)8/2/1998 9:24:00 AM
From: Harold Engstrom  Read Replies (1) of 340
 
PNU, JNJ and AMGN have all had quarters way out of line with the others within the past year. As you look at bigger and bigger pharms, the earnings are smoother and smoother. Look at smaller and smaller pharms: R&D programs and investments have significant impact on earnings from quarter to quarter. Teva just isn't big enough yet to have milestone achievements and setbacks disappear into the balance sheet.

Agree that Teva should not give unrealistic expectations to shareholders and analysts. Also agree with the premise that a high PE can only be sustained with follow-through.
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