On Friday, Piper Sandler maintained its Overweight rating and $20.00 price target for Teva Pharmaceutical Industries Ltd. (NYSE:NYSE:TEVA), following recent market developments. The firm's analyst noted that despite Indivior's decision to discontinue Perseris, a long-acting injectable (LAI) antipsychotic, this move does not signal any negative implications for Teva's own LAI risperidone product, Uzedy.
Teva's position in the LAI antipsychotic market appears to be solid, with expectations to build a significant franchise. The company's portfolio includes Uzedy and another promising candidate, TEV-749, an LAI form of olanzapine.
While not anticipated to reach the sales levels of Johnson & Johnson's Invega franchise, which garners approximately $3 billion in U.S. sales, Teva's offerings are projected to surpass $1 billion, with TEV-749 potentially being a key growth driver due to the current lack of a comparable LAI olanzapine product on the market.
The analyst's confidence in Teva's prospects is backed by a previous psychiatrist survey conducted on June 12, 2024, which provided additional details supporting the potential success of the company's LAI antipsychotic franchise. The survey results seem to reinforce the belief that Teva's products will capture a substantial market share in the LAI segment.
In summary, Piper Sandler's reiteration of Teva's Overweight rating reflects a positive outlook on the company's ability to leverage its LAI antipsychotic portfolio. With Uzedy already in the market and TEV-749 on the horizon, Teva is expected to establish a strong presence in this therapeutic area.
InvestingPro Insights
In light of Piper Sandler's positive outlook on Teva Pharmaceutical Industries Ltd. (NYSE:TEVA), InvestingPro data and tips offer additional context for investors considering the company's stock. Teva's market capitalization stands at a robust $19.37 billion, indicating a significant presence in the pharmaceutical industry. Despite a negative P/E ratio over the last twelve months, the adjusted forward P/E ratio suggests an expectation of profitability, aligning with the analyst's forecast for growth in the LAI antipsychotic market.
InvestingPro Tips highlight that Teva is a prominent player in the Pharmaceuticals industry and is trading near its 52-week high, showing strong returns over the last year with a notable 111.9% one-year price total return. This performance is complemented by a 63.79% year-to-date price total return, showcasing the company's recent market success. Additionally, analysts predict the company will be profitable this year, which could further bolster investor confidence.
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