Teva CEO sees gains from U.S. health reform law

* Volume gains seen overshadowing pricing pressure

* Teva is world’s No. 1 generic drugmaker

NEW YORK, May 13 (BestGrowthStock) – The head of the world’s
biggest generic drugmaker on Thursday predicted benefits for
his company from the new U.S. healthcare reform law in the form
of potential business gained through the uninsured Americans
who will receive coverage.

Shlomo Yanai, chief executive officer of Teva
Pharmaceutical Industries Ltd (TEVA.TA: )(TEVA.O: ), called the new
reforms that are expected to provide insurance coverage for
more than 30 million uninsured Americans starting in 2014
“positive news” for his company.

“At the end of the day, we are going to see 31 million more
potential customers that are going to buy Teva products,” Yanai
told an investor conference in New York.

Yanai acknowledged that there would be more pricing
pressure, but that Israel-based Teva was constantly looking to
reduce its costs.

“I believe that the volume will outpace the price
consequences,” he said. “Therefore it is positive news for
Teva.”

The U.S. Congress earlier this year passed an overhaul of
the healthcare system, although many of the reforms do not take
effect until 2014.

In the interim, there are other measures that can drive
higher use of generic drugs, Bill Marth, Teva’s head of North
American operations, told the conference.

Marth pointed to provisions that will close a coverage gap
— known as the “doughnut hole” — in the Medicare prescription
drug benefit for seniors.

Many drugmakers reported a crimp on first-quarter earnings
due to the new reform law, and expect even greater pressure
next year. But some executives, such as the CEO of Merck & Co
(MRK.N: ), have said the reforms will be positive for their
companies over time.

Stock Market Money

(Reporting by Lewis Krauskopf; Editing by Phil Berlowitz)

Teva CEO sees gains from U.S. health reform law