Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) and Microchips Biotech, Inc. today announced that they have entered into a partnership under which the companies will explore innovative ways to apply Microchips Biotech’s implantable drug delivery device to Teva’s portfolio of products with the goal of enhancing clinical outcomes for patients on chronic drug therapies. Microchips Biotech’s electronic device is made up of microchip arrays that can store hundreds of therapeutic doses of drug for periods ranging from months to years and releases each dose at precise times. The device can be programmed to release drug on a pre-determined schedule and will have wireless control features.

“The microchip-based implant is truly at the intersection of digital technology and medicine and the future of drug delivery for patients who cannot tolerate needles, require regular self-administered injections or where compliance is critical to outcomes,” stated Michael Hayden, MD, PhD, Teva’s President of Global R&D and Chief Scientific Officer. “At Teva we are leading innovation in medicine with promising new drugs and solutions for drug adherence to improve patient outcomes and reduce unnecessary healthcare complications.”

Under the terms of the agreement Teva will make a $35 million upfront payment to Microchips Biotech in the form of an equity investment and technology access fee. The partnership has an initial focus on one selected disease area, but will provide Teva with the option to later expand the program into several additional therapeutic areas and sensing applications that are proprietary to Teva. As programs advance, Microchips Biotech will receive development and commercial milestone payments and royalties on future product sales. Microchips Biotech will also receive funding to develop products for any future additional indications Teva may develop, and Teva will be responsible for Phase II and Phase III clinical development and regulatory filings. “We are thrilled to be aligned with an organization that sees the potential of our technology to transform the way medications are delivered to patients, providing the potential to increase compliance and significantly improve outcomes,” stated Cheryl R. Blanchard, Ph.D., Chief Executive Officer of Microchips Biotech. “This is the first of what we hope to be many partnerships with industry to leverage our technology across a broad array of therapeutic applications and disease states.” (Original Source)

Shares of Teva Pharmaceutical Industries closed yesterday at $60.15. TEVA has a 1-year high of $68.75 and a 1-year low of $47.36. The stock’s 50-day moving average is $60.69 and its 200-day moving average is $59.08.

On the ratings front, Teva has been the subject of a number of recent research reports. In a report issued on June 16, Maxim Group analyst Jason Kolbert reiterated a Buy rating on TEVA, with a price target of $68, which implies an upside of 13.1% from current levels. Separately, on June 4, Deutsche Bank’s Gregg Gilbert maintained a Buy rating on the stock and has a price target of $73.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Kolbert and Gregg Gilbert have a total average return of 2.6% and 20.9% respectively. Kolbert has a success rate of 41.8% and is ranked #1250 out of 3632 analysts, while Gilbert has a success rate of 76.0% and is ranked #214.

Overall, one research analyst has assigned a Hold rating and 7 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $73.00 which is 21.4% above where the stock closed yesterday.

Teva Pharmaceutical Industries Ltd develops, produces and markets generic, branded & OTC medicines. Some of its products are Copaxone, Azilect & Provigil.