JP Morgan Shows Most Interest In Teva, Organon As Specialty Pharma Sector Exhibits Signs Of Stability

JP Morgan notes that while there’s a resurgence of interest and excitement in new product launches within the specialty group, including branded and complex generics/biosimilars, investors should be discerning about these opportunities.

The group’s core fundamentals have strengthened, buoyed by a more stable environment for generic and established brand pricing, which helps mitigate the usual erosion in base business prices.

However, growth in the overall sector remains modest, with most companies experiencing a top-line compound annual growth rate (CAGR) of 0-2%.

Additionally, valuations have recovered, with most stocks now trading near their historical averages.

JP Morgan writes that Teva Pharmaceutical Industries Ltd (NYSE:TEVA) continues to be the primary focus among investors in the group, with sentiment growing more bullish.

The analyst maintains a Neutral rating, as the market seems to have fully accounted for the company’s branded pipeline. Additionally, JP Morgan is cautious about Teva’s U.S. …

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