Approval for innovative schizophrenia treatment boosts Teva
Teva's share price jumped 4.7% on Friday, reaching an annual high of $41.1, after the FDA approved Weltruza, a once-monthly injection for schizophrenia. The stock last traded at this level in November 2016. Teva estimates peak annual sales of $1.5-2 billion for the drug.
Teva Pharmaceutical Industries' share price jumped 4.7% on Friday on the New York Stock Exchange, closing at an annual high of $41.1 and giving the company a market cap of $47.9 billion. The stock last traded at this level almost a decade ago, in November 2016. The jump followed FDA approval for Weltruza (olanzapine), described as the first and only treatment for adults with schizophrenia administered by subcutaneous injection once a month. Teva stated that clinical trial results demonstrated improvement in symptoms, significant reduction in illness severity, and improvement in personal and social functioning. In past presentations, Teva estimated peak annual sales of $1.5-2 billion for Weltruza. Eric Hughes, Teva's executive vice president of Global R&D and Chief Medical Officer, said the approval reflects patient-centric innovation and that Weltruza eliminates the need for monitoring after each injection. Teva is due to release third quarter results on November 3. Jefferies analyst Dennis Ding raised his price target from $40 to $48, maintaining a Buy recommendation.