On Monday, Teva said it launched a generic version of Wyeth's heartburn drug Protonix. It continued shipping the drug for about two days before Wyeth said it will sue Teva, and the Israeli company stopped shipments for 30 days in order to negotiate a possible settlement.

Teva also raised its 2007 earnings guidance to $2.34 to $2.36 per share from $2.20 to $2.30 per share.

Analysts surveyed by Thomson Financial expect the company to earn $2.32 per share this year.

The stock rose 2.9 percent Monday, setting an all-time high of $46.97 and closing at $46.48.

Friedman Billings Ramsey analyst Robert Uhl said he think Teva shipped $150 million worth of its generic, with about $70 million in sales counting toward its fourth quarter results. He said Teva could top estimates in the first quarter if it resumes sales on or by Jan. 22, when the 30-day halt expires.

The analysts' consensus for the first quarter is 61 cents per share.

Uhl increased his 2007 earnings estimate to $2.35 per share from $2.32 and his 2008 outlook to $2.69 per share from $2.65. He pushed his price target to $53 from $52 and kept an "Outperform" rating on the stock.

CIBC World Markets analyst Elliot Wilbur said the launch is the first of several key generic drug debuts for Teva in the next few months. He said versions of osteoporosis drug Fosamax, among others, will lift the stock.

"Generic Protonix provides strong momentum into 2008 and should trigger further upside to consensus earnings per share," he said.

Wilbur raised his 2007 earnings estimate to $2.35 from $2.30 per share and his 2008 call to $2.67 from $2.62 per share. He has a price target of $53 on the stock with a "Sector Outperformer" rating.