PARSIPPANY, N.J. - Teva Pharmaceuticals, the U.S. affiliate of global pharmaceutical company Teva Pharmaceutical Industries Ltd. (NYSE:TEVA), has announced the release of the first generic version of Sandostatin® LAR Depot, an injectable suspension used to treat acromegaly and severe diarrhea associated with carcinoid syndrome. This new generic product, octreotide acetate for injectable suspension, is now available in the United States.
The launch of this generic medication provides a more accessible treatment option for patients with these conditions. Sandostatin® LAR Depot, the brand-name drug, reported annual sales of approximately $826 million as of July 2024, based on IQVIA data.
Octreotide acetate for injectable suspension is prescribed for long-term maintenance therapy in acromegaly patients who have not responded adequately to surgery and/or radiotherapy, or when these treatments are not viable. It is also used for the long-term treatment of severe diarrhea and flushing episodes associated with metastatic carcinoid tumors, as well as for the profuse watery diarrhea caused by VIP-secreting tumors.
Ernie Richardsen, SVP U.S. Commercial Generics at Teva, emphasized the significance of the launch, stating that it demonstrates Teva's expertise in complex generic formulations and its commitment to providing value to patients and healthcare systems.
The generic version of Sandostatin® LAR Depot has been shown to affect gallbladder function, sugar metabolism, thyroid and heart function, and nutritional absorption, which may require monitoring by a healthcare provider. Patients are advised to report any signs or symptoms of gallstones or complications to their doctor.
Side effects of the medication in acromegalic patients can include gallstones, diarrhea, abdominal pain, and other symptoms, while carcinoid tumor and VIP-secreting tumor patients may experience back pain, fatigue, headache, abdominal pain, nausea, and dizziness.
This news is based on a press release statement from Teva Pharmaceutical Industries Ltd. The company, with a history spanning over 120 years, is recognized for its generics expertise and efforts in innovation and delivery of quality medicines.
In other recent news, Teva Pharmaceutical Industries Ltd. and Walgreens Boots Alliance (NASDAQ:WBA) Inc. have reached settlements with the city of Baltimore over opioid litigation. The settlement with Teva amounts to $80 million, with the details of the Walgreens agreement undisclosed. These settlements contribute to the city's total recoveries of $402.5 million in similar cases.
UBS has raised its price target for Teva to $26.00, maintaining a Buy rating, due to the promising prospects of Teva's drug candidate duvakitug. The firm's revised expectations for duvakitug's peak sales now reach $1.5 billion, accounting for Teva's 50% share of the revenue. Additionally, Teva reported a significant increase in its second-quarter revenue for 2024, with an 11% growth to $4.2 billion.
Piper Sandler reiterated its Overweight rating on shares of Teva, maintaining a price target of $23.00, following the announcement by Evernorth to exclude the brand Humira from its Express Scripts commercial formularies starting in 2025. This decision is expected to benefit Teva's Humira biosimilar, Simlandi. The firm anticipates that Teva's expanding presence in the biosimilar sector, along with its portfolio of complex small molecule generics, will contribute to the stability of its U.S. business.
These are recent developments in the pharmaceutical industry involving Teva Pharmaceuticals.
InvestingPro Insights
Teva Pharmaceuticals' launch of the generic version of Sandostatin® LAR Depot aligns with the company's strategy to capitalize on its expertise in complex generic formulations. This move could potentially boost Teva's revenue, which stood at $16.29 billion over the last twelve months as of Q2 2024, according to InvestingPro data.
The company's focus on providing value to patients and healthcare systems through generic offerings is reflected in its market performance. InvestingPro data shows that Teva has experienced a strong return over the last year, with a 76.67% price total return. This positive momentum is further evidenced by the stock trading near its 52-week high, at 94.44% of that peak.
InvestingPro Tips highlight that Teva is a prominent player in the Pharmaceuticals industry, which aligns with its position to launch significant generic medications like the Sandostatin® LAR Depot alternative. Additionally, analysts predict that the company will be profitable this year, which could be partly driven by such strategic product launches.
It's worth noting that while Teva has shown strong recent performance, it faces some financial challenges. The company was not profitable over the last twelve months, and its short-term obligations exceed liquid assets. However, the launch of high-value generics could potentially improve its financial position.
For investors interested in a deeper analysis, InvestingPro offers 11 additional tips for Teva Pharmaceuticals, providing a more comprehensive view of the company's financial health and market position.
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