Here’s Why Teva Pharmaceutical (TEVA) Stock Soared Today
There’s a new FDA-approved migraine treatment on the scene. On Friday night, the U.S. regulators green-lighted Teva Pharmaceutical’s (TEVA) Ajovy (fremanezumab-vfrm) injection for the preventive treatment of migraine in adults. In reaction, Teva shares climbed as much as 7% in Monday’s trading session.
TEVA’s CEO Kåre Schultz commented, “This is an important day for Teva and complements our long-standing history of helping patients living with diseases of the central nervous system […] The approval of AJOVY helps us to continue to provide access to important medicines and to deliver on our commitment to our key stakeholders – patients, employees and shareholders.”
TEVA’s Head of North America Commercial Brendan O’Grady added, “Today’s approval is an important step forward for Teva and the migraine community […] Our entire organization is proud to bring this new biologic product forward at a responsible price, and we are eager to work with insurers to encourage coverage that provides full access and availability in this much needed category.”
Subsequently, Cantor analyst Louise Chen reiterated a Neutral rating on TEVA, with a price target of $25, which represents a potential upside of 5% from where the stock is currently trading. (To watch Chen’s track record, click here)
Chen opined, “This is clearly good news, and many investors we spoke with were not expecting the approval given manufacturing issues with TEVA’s partner Celltrion. Based on our diligence, we think this market could be billions of dollars in sales and big enough for several players. Pricing for the drug is in-line with Aimovig, which we think set the price for the market. There is some debate as to whether the oral CGRPs should cost more or less than the injections if they are approved. AGN is developing two oral CGRPs, and recently reported positive data.”
TipRanks reveals TEVA as a stock that has not drawn a vote of confidence among Wall Street opinion. Out of 12 analysts polled in the last 3 months, 2 are bullish on the stock, while 19 remain sidelined. The 12-month average price target stands at $24.25, which aligns evenly with where the stock is currently trading. Wall Street needs to see more from the Israel-based pharma giant before getting more confident on the story.