After failing to complete an acquisition since 2011, Teva may be prepared to pursue deals in 2015, Bloomberg reported Tuesday.
"Investors have seen what these deals are doing to the share prices" of other acquirers, said Gabelli & Co. analyst Kevin Kedra, adding "Teva has a healthy business, but in this environment if you're not doing deals, you're probably not taking advantage of the opportunities that are out there."
Teva's last takeover was its $6.2-billion purchase of Cephalon in 2011, which Jefferies analyst David Steinberg described as "an acquisition that you’d like to take back."
Teva CEO Erez Vigodman recently stated that the drugmaker is "fully geared" for business development activities such as acquisitions "at all sizes," while the company anticipates generic competition for the multiple sclerosis treatment Copaxone later this year.
Meda, Mylan and Perrigo have been suggested as potential merger partners for Teva, although Sanford C. Bernstein analyst Ronny Gal noted that a pairing of Teva and Mylan may require large divestitures due to overlap.
"Teva needs to figure out what it wants to look like five years from now, 10 years from now, because we still don't have a clear picture as to what direction they’re going to move on deals," stated Kedra.