Teva Pharmaceutical Releases Impressive Phase 2 Candidate Data For Gastro-Related Diseases

Teva Pharmaceutical Industries Ltd. TEVA and Sanofi SA’s SNY Phase 2b RELIEVE UCCD study met its primary endpoints in patients with ulcerative colitis (UC) and Crohn’s disease (CD).

In the RELIEVE UCCD study, 36.2% (low-dose) and 47.8% (high-dose) of patients with ulcerative colitis treated with duvakitug achieved clinical remission compared to 20.45% on placebo, placebo-adjusted rates were 15.7% (low dose) and 27.4% (high dose), at week 14.

BofA Securities raised the price target for Teva to $25 from $23 with a Buy rating, reflecting a strong Phase 2 data update for duvakitug in inflammatory bowel disorders (IBD).

Based on the strength of the data and the emerging product prole, the analyst forecasts nominal peak sales of ~$2 billion (booked by partner), with Teva booking half the profits.

Given the anticipated impact on profits by 2030, BofA factors in the long-term strength of Teva’s innovative portfolio by applying a valuation multiple of 9.25x to 2025 estimated EV/EBITDA.

Partnership milestone payments provide reliable cash flow, and the analyst sees potential for the stock to gain value as the company shifts toward growth-focused execution.

The TL1a drug class has emerged over the last two years, led by Merck & Co Inc MRK Prometheus’ strong Phase 2 data, which was followed by similar data from Roche Holdings AG’s RHHBY competitor asset.

BofA writes that TL1a was a class of drug that could offer a very good safety profile, on par with market-leading Takeda Pharmaceutical Co Ltd TAK Entyvio, plus a high rate of efficacy across all major patient subgroups.

Data update from Teva in around 240 patients in Phase 2 showed 16%-27% placebo-adjusted MAYO remission scores in the UC population, with the high dose compared favorably to competitors.

TEVA Price Action: Teva Pharmaceutical stock is up 3.23% at $21.56 at publication Wednesday.

Read Next:

• Novo Nordisk’s Ozempic Under Scrutiny For Potential Increased Risk Of Rare-Eye Disease

Photo: Courtey Teva Pharmaceutical Industries