Citigroup Rates Teva Pharmaceutical Industries (TEVA) A Buy After Court Ruling

Citigroup Global Markets analyst John Boris reiterated his Buy rating for shares of Teva Pharmaceutical Industries (Nasdaq: TEVA), with a price target of $72.

Boris reiterated his Buy rating after an Indiana Southern District Court (INSDC) ruled in favor of Eli Lilly and Company (NYSE: LLY) in one matter and ruled that another matter had already been decided in a lower court.

The earlier court decision referred to by the judge saw a different Eli Lilly and Company patent invalidated.

The move clears the way for a Teva Pharmaceutical Industries "generic Gemzar launch on 11/15/10 with 180-days of exclusivity unless the CAFC upholds the '826 patent or LLY settles with Teva/Sun."

Still, Citigroup Global Markets current EPS estimates for Teva Pharmaceutical Industries exclude any impact from generic gemcitabine.

The Citigroup Global Markets analyst wrote, "the sales/EPS benefit to Teva from a 11/15/10 gemcitabine launch assumes Teva reaches 70% market share at a 30% discount during the 180-day exclusivity period. Thereafter, we assume Teva experiences competition only from Sun Pharma/Caraco leading to a 60% price discount, with Teva’s market share reduced to 60%."