Previous Statements by TEVA
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And that really doesn’t, that doesn’t box us in just into the U.S. market where the patent cliff is an issue. We see really growth around the world in two main dimensions, one being the Spec Pharma world or the specialty pharma world where we participate.We’re a $22 billion corporation. We have about $12 billion of sales in generics, about $8 billion in brand, about a $1 billion in distribution and about $1 billion in OTC. So our spec pharma business is very important to our business. That’s one side of it. The other side is our growth potential in international markets. Right now, we have the U.S. market, which is about $5 billion to $6 billion business and moves up and down on an annual basis based on some patent expiries and the exclusivities that you’ll get from that. It’s an excellent market. We’re excited about it. There’s still tons of value out there to get. If you think about the U.S. market, $300 billion market, roughly $50 billion IMS put us -- that’s in IMS dollars. IMS puts about $50 billion of that value towards generics. So if you look at what we can still go after in that market that’s $250 billion. It’s harder to get to today because in the future, because you’re not going to have as many large products that It won’t be so concentrated, but you do have a lot of products that you can chase, whether it’s biosimilars, which we have a very active program on or it’s your very small molecule lots of, maybe not so complex and many other complex products that exist as well. So lots of opportunity yet in the U.S., I really think from our perspective, we like investors to think about us as that growing specialty pharma company we’re the 14th largest in the U.S. today, but as well as really an international generics player.
Doug Tsao – Barclays CapitalAnd when you think about the international opportunity, what do you see as the key levers for Teva? Is it further geographic expansion, is it increasing generic penetration, market share gains, how do you see that playing out over the next few years? Bill Marth Yeah. If you look at the global generics market, its worth about $120 billion and $130 billion today, growing to 2015 you’ll be at about $150 billion. What’s really interesting about the global generics market is the BGX component or the branded generics component. We have a situation here where the wealth has moved around the world and as wealth adores to a greater portion of the world, whether that be because of oil or manufacturing, for whatever reason. The middle class around the world seeks greater healthcare and as they seek greater healthcare, pharmaceuticals is a large part of that. Many of these systems have more nascent quality systems or regulatory -- not as vigorous regulatory systems that exist out there. So people look for branded generics as a way to deal with that. They don’t want the generic generics that exist in many of these markets and they’re cash paying, a lot of it’s out of pocket, because it’s out of pocket, they have a choice. And for us, we think that this is a great area and that’s why we -- that’s the market we play in. We have a $500 million business and growing 20% a year in Russia. We have just under $1 billion business in Latin America, which is largely a BGX business. Those businesses are growing. They’re doing well and that exists in Eastern Europe, actually in Southern Europe. Those businesses are around the world and we think they are very important markets. And that’s one of the areas that we’re very excited about and we spend a lot of time on.
Doug Tsao – Barclays CapitalAnd how do you generally see the economics on the BGX market, as well as the BGX products versus your standard generic products and substitutable? How should we think about that from a business model or a gross profit standpoint to what are traditional generic markets and how we view it? Read the rest of this transcript for free on seekingalpha.com