NEW YORK (AP) - Shares of Teva Pharmaceuticals Industries Ltd. gained in
premarket trading Monday after the Israeli generic drug maker increased its
guidance for 2007 profit and said it has launched a generic version of Wyeth's
treatment for gastroesophageal reflux disease.
With the launch, Teva now expects is fiscal 2007 profit to exceed Wall
Street forecasts.
Goldman Sachs analysts Randall Stanicky and Fara Berkowitz said the launch
was "not a total surprise," even though the company is tangling with Wyeth over
the drug in court.
Shares gained $1.68, or 3.7 percent, to $46.85 premarket, from their close
Friday at $45.17.
Wyeth shares slipped $1.67, or 3.6 percent, to $45.19, from their close at
$46.86.
Goldman analyst James Kelly said, "This situation is very fluid," given that
Wyeth was denied a preliminary injunction against Teva's launch of the generic
in September. Teva said the two companies were in discussions about further
shipments.
But Kelly said the launch could cut up to 19 percent off Wyeth's 2008
per-share profit. "A settlement could mitigate the near-term EPS impact, driven
by the timing and the terms," he said.
Futures trading and the Nasdaq-100 Premarket Indicator pointed to the U.S.
markets opening higher, continuing the two-day rally started last week.
Also losing ground in the early session were shares of FullCell Energy Inc.,
after Connecticut's state utility commission reportedly decided to grant a
smaller contract to the Danbury-based alternative energy company, disappointing
investors who hoped for a bigger slice of the state's efforts to reduce energy
consumption. The final decision has not yet been released.
The stock had rallied in recent weeks, as investors anticipated a larger
award.
"We believe the stock will be under meaningful pressure given this outcome
which will slow FCEL's potential cost reduction plans given lower than potential
production levels," said JPMorgan Securities analyst Brannon Cook in a note to
clients, using the company's Nasdaq Stock Market ticker. "However, we expect
outside of Connecticut, FCEL retains meaningful momentum in CA and Korea and
look for other new orders in the pipeline."
FuelCell shares fell $2.09, or 16.5 percent, to $10.79 premarket, from their
Friday close at $12.88.
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