Why Teva Pharmaceutical Industries Ltd’s (ADR) Stock Is In The Red Today


TEVA logoShares of Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) slipped 2% this morning after the generic giant announced that a Phase III registration study evaluating subcutaneously administered reslizumab (110 mg) in a pre-filled syringe did not meet its primary endpoint of significantly reducing the frequency of clinical asthma exacerbations (CAEs) in patients with uncontrolled asthma and elevated blood eosinophils >300/mcL. Additionally, a Phase III claim-support study evaluating subcutaneously administered reslizumab in patients with oral corticosteroid (OCS)-dependent asthma did not meet its primary endpoint of reduction in daily OCS dose.

“We are disappointed that these trials of the reslizumab formulation administered subcutaneously at a fixed-dose of 110 mg did not meet their primary endpoints. However, these results reinforce the role of eosinophils in severe asthma disease biology and the importance of defining the right blood eosinophil cutoff point for patient selection. We continue to see the positive impact of the intravenous formulation as a clinically effective 3mg/kg weight-based dosing option in patients with asthma and elevated blood eosinophils who are inadequately controlled on standard-of-care therapy,” said Tushar Shah, MD, Senior Vice President, Specialty Clinical Development and Medical Affairs at Teva.

On the ratings front, Teva stock has been the subject of a number of recent research reports. In a report released today, Maxim analyst Jason Kolbert assigned a Hold rating on TEVA. Similarly, on January 18, BTIG’s Tim Chiang downgraded the stock to Hold.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Kolbert and Tim Chiang have a yearly average loss of -4.5% and a return of 10.2% respectively. Kolbert has a success rate of 39% and is ranked #4616 out of 4749 analysts, while Chiang has a success rate of 56% and is ranked #997.

Overall, the sentiment on the street is mostly neutral on TEVA stock. Out of 22 analysts who cover the stock, 13 suggest a Hold rating , 5 suggest a Buy and 4 recommend to Sell the stock. The 12-month average price target assigned to the stock is $19.53, which reflects a potential downside of 6% from last closing price.

Teva is a global pharmaceutical company, which provides patient-centric healthcare solutions. It operates through two segments: Generic Medicines and Specialty Medicines. The Generic Medicines segment includes chemical and therapeutic equivalents of originator medicines in a variety of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. The Specialty Medicine segment engages in the provision of core therapeutic areas of central nervous system medicines.

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