Teva Shoots To 5-Year High With Good News For Its Blockbuster Hopeful

Teva Shoots To 5-Year High With Good News For Its Blockbuster Hopeful

Teva stock hit a five-year high on Wednesday after the company beat first-quarter expectations and revealed promising results from its schizophrenia treatment study.




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Teva Pharmaceuticals (Suits you) is trying to develop a monthly injection for the treatment of schizophrenia. Currently, the antipsychotic called olanzapine – which Teva also sells – is given as a daily pill or dissolvable tablet. But it can be difficult for patients to stick to this schedule.

After eight weeks, patients who received Teva’s long-acting olanzapine showed improvements of 9.71 points to 11.27 points compared to placebo on a 49-point scale measuring symptoms. Importantly, there were no episodes of post-injection delirium/sedation syndrome, or PDSS. Other efforts to develop long-acting olanzapine have failed due to this side effect.

Umer Raffat, an analyst at Evercore ISI, says monthly olanzapine could be a billion-dollar product for Teva.

“Long-acting antipsychotics are very molecule specific…and there is no clear long-acting action on olanzapine,” he said in a report. “Olanzapine is one of the most prescribed antipsychotics and (has) high efficacy.”

In the morning, action on the stock market today, Teva stock jumped more than 12% to 15.67. The move put Teva stock at its highest level since April 2019. Shares have recently regained their 50 day line, Market increase the analysis shows.

Teva stock: mixed first quarter

The first quarter also offered a bright spot for Teva stock.

Teva’s adjusted profit fell short of expectations by 4 cents per share. But at 48 cents per share, earnings were up 20% year over year. Teva also kept its earnings outlook for the year between $2.20 and $2.50 per share. The midpoint is slightly below analysts’ forecasts of $2.39, according to FactSet.

Sales also rose 4% to $3.82 billion, beating expectations of $3.74 billion.

The best growth has come from Austedo, which treats movement disorders. Sales soared 67% in the United States to $282 million. But it far exceeded expectations of $342.1 million. Teva attributed the growth to the launch of its extended-release version in May 2023, as well as expanded patient access and increased investment to meet demand.

Highly Rated Pharmaceutical Stocks

Meanwhile, sales of its generic drugs rose more than 6% globally to $2.29 billion. And revenue from migraine prevention drug Ajovy jumped nearly 20% to $113 million.

Teva also confirmed its guidance for full-year revenue of $15.7 billion to $16.3 billion. The midpoint of the sales forecast is higher than analysts’ expectations, which were forecasting $15.8 billion.

Raffat of Evercore ISI maintained its outperformance on Teva shares.

With “two major clinical results this fall on innovative assets, it’s a very different story than a few years ago,” he said.

Notably, Teva stock has an almost perfect price Composite score of 98. This means the stocks rank in the top 2% of all stocks in terms of both fundamental and technical measures. Stocks also have a digital IBD Relative Strength Rating of 91, which measures performance over 12 months on a scale of 1 to 99.

More soon.

Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.

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