What Tiger Woods and Israeli Pharma Teva have in common

A little flattery typically goes a long way. Katsman and I base most of our research from on-the-ground work we’re doing on Israeli stocks that trade in the U.S. As many who follow the sector know, it really helps in terms of information and data flow to be based in Israel. So, in order to break-out of group think, we

frequently travel to the US to meet with investors, the press and subscribers to our premium research product.

I take notice when I travel outside of Israel about how US investors and companies view Israeli firms. More importantly, I also get a chance to watch some great sports which our Israeli cable providers either miss or show at awful hours of the night. So, it was a huge treat yesterday for me to kick back and watch the playoffs of one of golf’s greatest events, the US Open, where once again, Tiger Woods made me feel totally inadequate as a man. It was a thrill to watch the best in the world compete.

Following suit, I stumbled upon a recent interview with Novartis Chief, Dan Vasella, via a recent Globes article. Quoted from a recent interview on the WSJ’s Health Blog (link here), the Novartis CEO basically pulled a Rocco Mediate, Tiger’s 45 year old , nice-as-anything nemesis in the playoffs who just wouldn’t quit. Addressing a great performance by Teva (TEVA), the #1 generic drug manufacturer globally compared to Novartis’s Sandoz unit at #2, Novartis CEO, a la Rocco, said, “Teva is better than we are, and that’s hard to take.”

According to the blog, the Novartis CEO continued with more praise for Teva. “The Israeli generics shop is bigger, with more vertical integration, and has been outpacing Novartis’s generic unit on key measures of success in the business, Vasella said. Still, he claimed to see a silver lining in the situation: “It is good to look at how we could be better,” he said.”

Pretty amazing words from a pretty amazing firm. Taking perspective, though, it’s pretty understandable. Katsman covered some interesting developments today in the Teva story, as Azilect, which is the brand name for rasagiline, has made some strong progress in treating Parkinson’s. According to the company via Haaretz, this new “drug can actually slow the disease’s progression, which can’t be said for any other therapy for the so-far incurable nervous system condition.”

So, in addition to the strongest generic business in the market, Teva is moving forward with a strong pipeline in its branded portfolio — something even the top pharmaceutical firms are struggling with.

So, in deference to Tiger and Teva, congratulations on both your wins.

Disclosure: Author’s fund has a position in TEVA as of 6/17/08.

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