Is Teva Giving You the Chills?
Written by: Israel Investor Newsletter | June 18, 2007
Douglas Goldstein, CFP
www.IsraelNewsletter.com
According to an FDA warning, Teva (TEVA) Pharmaceuticals’ local/general anesthetic Propofol is giving some patients the chills, fever and aches immediately after receiving the shot.
According to Haaretz, any patient who feels chills, fever or pain after receiving Propofol should be tested for bacterial infection of the blood, which can lead to death mainly among the elderly and weak, or people with compromised immune systems.
Propofol, which is marketed as Diprivan and in generic versions, is responsible for 28% of the annual sales of Sicor, which Teva bought in November 2003 for $3.4 billion. Overall, Teva had almost $9 billion in revenue over the past year and has been growing its quarterly revenue by over 24% year over year.
Though there are many obstacles that can make a drug company’s stock look ill, this Propofol setback probably won’t have too much of a bottom line impact, unless it turns out that there are more severe health problems that result from its use.
Disclosure: Author’s fund is long Teva as of 6/17/07.
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Douglas Goldstein is the Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email doug@profile-financial.com.
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