Latest news with #Austedo
CNBC
28-05-2025
- Business
- CNBC
Investors should buy the dip on this pharma stock with 40% upside, Truist says
Teva is positioning itself well for sharp gains in the near future after a decline this year, according to Truist Securities. The firm initiated shares of the generic drug maker with a buy rating. Analyst Les Sulewski set a price target of $25 per share, indicating upside of 41%. Shares of Teva have struggled this year, losing around 20%. However, Sulewski thinks that pullback created a buying opportunity for investors. "We think the company is well positioned to rival big pharma with its long-term durable growth strategy. With stock trading 25% off recent highs, we urge investors to accumulate," the analyst wrote. TEVA YTD mountain TEVA YTD chart Sulewski noted highlighted Teva's focus on margin improvement, which he said is being driven in part by: "High-margin specialty brands" such as Austedo and Ajovy, which are used to treat Huntington's disease and migraines, respectively. Plans to reduce manufacturing facilities to less than 22 from 34. "Mgmt continues to prioritize the company's Pivot to Growth plan, introduced 2023, with potential line of sight of ~300bps operating margin improvement by 2027," Sulewski added. "We look forward to hearing the next chapter for growth outlined in the company's upcoming Innovation and Strategy Day on May 29 when we anticipate mgmt to introduce an updated 5-year outlook, both figurative and thematic." The analyst noted that Teva's emphasis on specialty growth has not come at the cost of its identity as a "generics powerhouse," adding that the company "continues to benefit from new product launches, while ongoing portfolio cuts are helping to protect pricing and mix." Teva also has an innovative drug pipeline, which includes olanzapine to treat schizophrenia and duvakitug to treat ulcerative colitis and Crohn's disease. Teva shares gained more than 1% after Truist's bullish call. Most analysts are optimistic on Teva. LSEG data shows that eight of 11 covering the stock rate it a buy or strong buy. The average price target also signals upside of nearly 29%.
Yahoo
27-05-2025
- Business
- Yahoo
TEVA Stock Up Around 13% in a Month: Buy, Sell or Hold the Stock?
Teva Pharmaceutical Industries Limited's TEVA stock has risen 12.9% in a month. Teva's stock mainly gained after it announced first-quarter 2025 results on May 7. Teva's first-quarter results were mixed as it beat estimates for earnings but missed the same for sales. Teva slightly lowered the higher end of its sales guidance for 2025 while increasing the lower end of its EPS range. Teva said that its guidance was based on the tariffs already in place and does not reflect any impact from potential tariffs on pharmaceutical imports. The company stated that it expects U.S. tariffs to have an 'immaterial impact' on its profits, which are already factored into its 2025 earnings outlook. Teva's chief financial officer, Eli Kalif, said that Teva has a substantial U.S. manufacturing footprint and a very limited exposure to China and India from a sourcing perspective. He also said that the company is well-positioned to navigate the potential impact of the U.S. tariffs. On the Q1 conference call, Teva also reaffirmed its targets for 2027. Teva expects an adjusted operating margin of 30% by 2027 to be achieved by cost savings and the continued growth of its branded drugs. Along with the earnings release, Teva announced that it expects approximately $700 million of net cost savings (after reinvestment in business) by 2027. Teva's positive comments about the tariff impact, the slightly increased earnings outlook for 2025, and the details on the planned cost savings seem to have impressed investors, despite the mixed first-quarter results and narrowed revenue outlook for the year. The recent stock price increase has left investors wondering whether to buy, sell or hold the stock. Let's discuss the company's strengths and weaknesses in detail to understand how to play TEVA. The company is seeing continued market share growth of its two newest branded drugs, Austedo and Ajovy. Though Teva is seeing slightly slower growth of Ajovy in the U.S. market, it expects sales to benefit from continued patient growth and launches in additional countries in Europe and international markets. Ajovy sales rose 18% in 2024 and 26% in the first quarter of 2025. For Austedo, Teva expects to achieve annual revenues of more than $2.5 billion by 2027. The Austedo franchise got a boost from the launch of Austedo XR, a new once-daily formulation of Austedo. Teva expects to launch Austedo in European markets in 2026. Austedo sales rose 34% in the United States in 2024 and 39% in the first quarter of 2025. Uzedy (risperidone) extended-release injectable suspension, a long-acting subcutaneous atypical antipsychotic injection for the treatment of schizophrenia in adults, was launched in May 2023 in the United States. In 2024, Teva recorded Uzedy sales of approximately $117 million, more than its target of approximately $100 million. In 2025, Uzedy sales are expected to be approximately $160 million. Teva has also made decent progress with its branded pipeline, which includes olanzapine, a long-acting subcutaneous injectable (LAI) for treating schizophrenia and duvakitug, its anti-TL1A therapy for inflammatory bowel diseases ('IBD'), ulcerative colitis (UC) and Crohn's disease (CD). Teva has partnered with Sanofi SNY for duvakitug to maximize the value of the asset. Teva and Sanofi will equally share the development costs globally. In December, Teva and Sanofi's phase IIb study on duvakitug for treating UC and CD met its primary endpoints. Teva and Sanofi plan to begin a phase III program on duvakitug in the second half of 2025. Teva expects to file a new drug application to seek approval for olanzapine in the second half. In the past few quarters, Teva achieved several successful launches of biosimilars and other high-value complex generics, including Novo Nordisk's Victoza, Roche's cancer drugs Rituxan (Truxima) and Herceptin (Herzuma), AbbVie's Humira (Simlandi), J&J's JNJ Stelara (Selarsdi), Novartis' Sandostatin LAR and AstraZeneca's Soliris (Epysqli) Teva has a decent pipeline of biosimilars, with some being developed in partnership with Alvotech, including high-value complex generics like Simlandi and Selarsdi. These are the first two biosimilars to be launched in the United States under the Teva and Alvotech strategic partnership, which includes five biosimilars. Teva expects to launch seven (including Simlandi and Selarsdi) biosimilars in the United States and four in Europe between 2025 and 2027. Biosimilar versions of Amgen's AMGN Prolia, Regeneron's Eylea and J&J's Simponi are under review in the United States, while those of Amgen's Xgeva, Simponi and Prolia are also under review in the EU. A biosimilar of Novartis' Xolair is in late-stage development. Teva's U.S. generics/biosimilars business looks stable now, much more than it has been in years. Teva's U.S. generics/biosimilars business rose 15% in the United States in 2024, driven by new product launches. Teva expects continued growth in its U.S. generics business in 2025, driven by complex product launches like Victoza, Forteo and others, as well as upcoming launches of Symbicort, Saxenda and biosimilars Simlandi and Selarsdi. Teva faces several lawsuits with cities, states and Native American tribes, which claim that it was one of the several companies whose opioid-based drugs were responsible for fueling the nationwide opioid epidemic. In June 2023, Teva announced that it had fully resolved its nationwide settlement agreement related to opioid claims brought by all 50 U.S. states and more than 99% of the litigating subdivisions and special districts. As part of the settlement, Teva will pay up to $4.25 billion (including the already settled cases), spread over 13 years, including deliveries of up to $1.2 billion of its generic version of Narcan. In September 2024, Teva reached an agreement with the City of Baltimore to settle its opioid-related claims for a total of $80 million, thus settling with 100% of the litigating subdivisions and special districts. The settlement amount was, however, more than Teva's initial expectations to pay around $2.6 billion to settle the lawsuits. Teva's stock has declined 23% so far this year compared with a decrease of 15.8% for the industry. Image Source: Zacks Investment Research TEVA's stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the company shares currently trade at 6.51 on a forward 12-month basis, lower than 9.70 for the industry. However, the stock is trading above its 5-year mean of 4.10. Image Source: Zacks Investment Research The Zacks Consensus Estimate for earnings has declined from $2.55 per share to $2.53 per share for 2025 but risen from $2.65 per share to $2.72 per share for 2026 over the past 30 days. Image Source: Zacks Investment Research Teva's revenues have suffered significantly since it lost exclusivity for key multiple sclerosis medicine, Copaxone, in 2015. Teva also faces competitive pressure for some of its key branded drugs. It also has a high debt load and faces some price-fixing charges. It will also face a potential revenue cliff for lenalidomide capsules (the generic version of Bristol-Myers' Revlimid) in 2026, as well as headwinds in 2027 related to IRA Medicare Part D negotiation for Austedo. However, its newer drugs, Austedo, Uzedy and Ajovy, and stable generics business are reviving top-line growth. With the nationwide settlement for the costly opioid litigations, new product launches, stability of the generics segment with contribution from biosimilars, and a robust biosimilar and branded pipeline, the path for Teva's long-term growth is becoming clearer. Teva is saving costs and improving margins through the optimization of operations for efficiency while also lowering the debt on its balance sheet. Teva's improving branded and biosimilar pipeline and the prospect of growth in sales and profits are good enough reasons for those who own this Zacks Rank #3 (Hold) stock to stay invested. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
13-05-2025
- Business
- Yahoo
Why Teva Pharmaceuticals Stock Blasted 6% Higher Today
A recommendation upgrade from a veteran investment bank put some real zip in the shares. The analyst behind the change is now bullish on Teva's future. 10 stocks we like better than Teva Pharmaceutical Industries › A positive change in recommendation from a well-known bank was the fuel propelling Teva Pharmaceutical Industries's (NYSE: TEVA) well higher on Monday. The company, known for being a top producer of generic drugs, saw its share price swell almost 6% as a result. That was good enough to beat even the very frothy S&P 500's (SNPINDEX: ^GSPC) 3.3% gain that trading session. The person behind the modification was JPMorgan Chase analyst Chris Schott, who pushed up his Teva stock recommendation one notch from neutral to overweight (read: buy). He also bumped his price target higher, from $21 per share to $23. The new level anticipates upside of 28% on the most recent closing stock price. According to reports, much of Schott's new analysis of Teva centers on the cost-cutting measures the company announced recently. In his opinion, the $700 million initiative makes management's goal of reaching a 30% operating margin by 2027 achievable. At the same time, it should also provide sufficient room for the company to keep its pipeline programs funded. Past that year, the prognosticator is bullish on Teva's branded products. In his estimation, drugs like Austedo, Olanzapine, and Duvakitug could drive the company's growth well higher. For the most part, the clutch of analysts tracking Teva are also expecting improvement in key fundamentals. Collectively, they feel full-year 2025 revenue will tick up by almost 3% this year over 2024 to $17 billion, with per-share net income improving at just under 2%. And although 2026 revenue is forecast to creep less than 1% higher year over year, that per-share net income figure should rise by a robust 9%. To me, Teva has quite a strong position as a crucial manufacturer of generic drugs. Yet it certainly isn't neglecting the branded side of its business, which is showing promise these days. I also like how management has assertively cleaned the balance sheet. Therefore, I don't blame Schott for being more bullish on Teva's future. Before you buy stock in Teva Pharmaceutical Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Teva Pharmaceutical Industries wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $614,911!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $714,958!* Now, it's worth noting Stock Advisor's total average return is 907% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy. Why Teva Pharmaceuticals Stock Blasted 6% Higher Today was originally published by The Motley Fool
CNBC
12-05-2025
- Business
- CNBC
JPMorgan says buy this pharmaceutical stock following cost-reduction announcement
JPMorgan moved off the sidelines on Teva Pharmaceuticals , citing its cost-cutting efforts. Analyst Chris Schott upgraded U.S.-listed shares of the Israeli pharmaceutical company to overweight from neutral. Schott hiked his price target by $2 to $23, which suggests 35.9% upside from last week's closing level. Schott's call comes after the company last week announced a plan for around $700 million in net savings. With that, the company should be able to see an operating margin of 30% in 2027. "Teva's margin trajectory in 2026/27 had been our primary concern on the story," Schott wrote to clients in a Monday note. "However, TEVA's $700mm cost-cut program ... bridges much of the gap from current results to the company's 30% operating margin target by 2027. And looking beyond this cost program, we see TEVA growth improving significantly as we look out to 2027 and beyond." The announcement comes as Teva shifts to the "acceleration" portion of its "pivot to growth" strategy that was announced in 2023. On top of the efficiency work, Schott called the company's portfolio "well-positioned" to see growth over time. He specifically noted that the Austedo tablets have surpassed expectations, while olanzapine can become a $1 billion to $2 billion product following its launch slated for next year. With the upgrade, Schott joined the majority of Wall Street analysts who have buy-equivalent ratings, per LSEG. Yet shares tumbled around 5% in Monday's premarket trading after President Donald Trump announced an executive order that would slash drug costs. The stock has already dropped more than 23% in 2025, reversing course after soaring more than 110% in the prior year. TEVA 1Y mountain TEVA, 1-year
Yahoo
09-05-2025
- Business
- Yahoo
Why Teva Pharmaceutical Stock Is Soaring Today
Teva reported Q1 earnings, beating Wall Street's EPS expectations. The company raised its full-year guidance as margins expand. 10 stocks we like better than Teva Pharmaceutical Industries › Shares of Teva Pharmaceutical (NYSE: TEVA) are surging on Wednesday. The company's stock is up 9.2% as of 1:15 p.m. ET and was up as much as 9.5% earlier in the day. The leg up comes as the S&P 500 is up 0.4% and the Nasdaq Composite is losing 0.1% on the day so far. The Israel-based pharmaceutical company reported strong Q1 earnings today and raised its full-year profit guidance. Teva reported Q1 adjusted earnings per share (EPS) of $0.52, solidly beating Wall Street's target of $0.48. The company missed on sales, however, reporting $3.89 billion for the quarter when $4 billion was expected. Still, the company's margins are expanding, reaching 48.2% in the quarter, compared to 46.4% a year ago. The company pointed to higher-margin specialty drugs representing a larger portion of overall sales this quarter. One of these drugs, Austedo, which is used to treat movement disorders, continued its strong performance with worldwide revenue of $411 for the quarter, up 39%, compared to the same period last year. Teva raised its fiscal 2025 adjusted EPS guidance from a range of $2.35 to $2.65 to a new range of $2.45 to $2.65. The new midpoint exceeds the consensus estimate of $2.55. CEO Richard Francis emphasized that Teva is now entering the "Acceleration Phase" of its "Pivot to Growth Strategy." "We're accelerating innovative growth and strengthening our generics business, while streamlining our operations, sharpening our business, and optimizing processes," Francis stated. These efficiency measures, combined with the company's product growth, appear to be resonating with investors. The company appears to be delivering on its growth plan. Considering its reasonable valuation, I think the stock is a good pick. Before you buy stock in Teva Pharmaceutical Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Teva Pharmaceutical Industries wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $613,546!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $695,897!* Now, it's worth noting Stock Advisor's total average return is 893% — a market-crushing outperformance compared to 162% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Teva Pharmaceutical Stock Is Soaring Today was originally published by The Motley Fool
