5 Cheap Pharmaceutical Stocks For 2021

2. Teva Pharmaceutical Industries Limited (NYSE: TEVA)

Number of Hedge Fund Holders: 26

Teva Pharmaceutical Industries Limited (NYSE: TEVA) is an Israel-based company that focuses on the development and production of generic drugs. It also has stakes in active pharmaceutical ingredients and proprietary pharmaceuticals. The company markets sterile products, hormones, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments, and creams. It is placed second on our list of 10 cheap pharmaceutical stocks for 2021. 

The company has a market cap of over $11 billion and posted an annual revenue of more than $16.5 billion in December 2020, down slightly to the $16.8 billion revenue posted the previous year. The 52-week share price range of the company is $13-$8. Earlier today, the shares of the company were trading at $10.8. Earlier this month, the European Union authorized Seffalair and BroPair Spiromax, two drugs developed by Teva, for the treatment of asthma patients. Initial launch of the new products are planned in Portugal, Spain, and the United Kingdom.

With a $412.9 million stake in TEVA, Warren Buffett’s Berkshire Hathaway owns 42.7 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 26 hedge funds held stakes in TEVA as of the end of the fourth quarter, versus 33 funds in the third quarter.

In one of their investor letters, Miller Value Partners highlighted a few stocks and Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is one of them. Here is what Miller Value Partners said:

“Teva Pharmaceuticals (TEVA) declined 26.9% during the quarter as the market continues to be concerned on opioid liabilities as well as price fixing lawsuits. The company report 2Q results with total revenue of $3.87B below consensus of $4.024B, but reiterated 2020 company guidance of $16.6-17B (consensus of $17.041B). The company reported 2Q Adjusted EBITDA of $1.108B versus $1.099B expected and reiterated 2020 Adjusted EBITDA of $4.5-4.9B ($4.637B consensus) and adjusted EPS of $2.30-2.55 ($2.53 consensus) and Free Cash Flow of $1.8-2.2B. The company was hit after the US Department of Justice alleged in a lawsuit that TEVA provided illegal copays from 2006-2015 on a drug to treat MS. The allegation is $300mm of false claims which TEVA would be liable for 3x that in potential damages if they were to lose in court.”