NEW YORK (TheStreet) -- Teva Pharmaceutical's ADR (TEVA) continues to benefit from the delay in FDA approval of a generic version of its top-selling multiple sclerosis drug Copaxone. The approval delay has given Teva more time to switch patients to a new, three-times-per-week version of the drug.
A low-cost version of Copaxone will be approved eventually, and bulls and bears argue over how much of an impact this will have on the stock's valuation.
At Tuesday's close at $54.95, shares of Teva are up 37% for the year and just short of the 52-week high of $55.24. Teva reports second-quarter earnings on July 31. Here's what to listen for.
As the FDA mulls over the generic version of Copaxone, Teva is taking steps to develop new drugs in its pipeline. It is also pursuing acquisitions in order to make up for any lost revenue due to generic Copaxone.
Wall Street is expecting Teva to report earnings of $1.19 per share, flat from one year ago, on a 3% year-over-year bump in total revenue to $5.06 billion. So far this year, Teva has maintained its 2014 revenue guidance in the range of $19.3 billion to $20.3 billion, which at the midpoint represents a drop of 2.5% from 2013.
Bulls will need reassurance that Teva's drug lineup can withstand FDA approval of generics. But bears will be looking for signs that the party is over.
At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.