On Thursday, Piper Sandler sustained its Overweight rating on shares of Teva Pharmaceutical Industries Ltd (NYSE:NYSE:TEVA), with a price target of $20.00. The firm's optimism is based on a recent survey of psychiatrists and their positive views on TEV-749, Teva's long-acting injectable (LAI) version of the antipsychotic medication olanzapine.
The survey included 25 psychiatrists who treat a substantial number of schizophrenia patients. The feedback was promising, with nearly 45% of the respondents indicating they would prescribe TEV-749 to a majority or nearly all of their patients currently treated with oral olanzapine. This response is significant considering a large portion of schizophrenia patients are managed with the oral form of the medication.
Piper Sandler highlighted the growing neuroscience segment of Teva, including the rapid growth of Austedo and the substantial contributions from the company's LAI antipsychotic franchise.
Additionally, the firm pointed to at least stability in Teva's U.S. generics and biosimilars segment as a reason for potential multiple expansion. The current enterprise value to estimated 2024 earnings before interest, taxes, depreciation, and amortization (EV/2024E EBITDA) ratio stands at approximately 7.5 times.
The firm's stance is reinforced by the high visibility into the long-term EBITDA stability and the potential for meaningful growth. Piper Sandler's reiteration of the Overweight rating reflects their confidence in Teva's market position and future financial performance.
In other recent news, Teva Pharmaceutical Industries has been making significant strides. The company reported a 5% revenue increase in Q1 2024 to $3.8 billion, with non-GAAP EPS rising by 18% in constant currency, according to its earnings call. The company's products, AUSTEDO and AJOVY, also experienced notable growth in sales.
In addition, Teva is implicated in the opioid crisis settlements, which now exceed $46 billion. The company, among others, was accused by local and Native American tribal governments of contributing to the opioid addiction epidemic. The legal fee pool derived from these settlements amounts to $2.13 billion.
Barclays has reiterated an Overweight rating on shares of Teva, influenced by an expected revenue increase tied to the performance of a product called Simlandi. The firm anticipates at least a $50 million increase in Teva's top-line revenue.
Teva announced the appointment of Matthew Shields as the Executive Vice President of Teva Global Operations, effective June 3, 2024. Shields brings over 25 years of experience in the biopharmaceutical and animal health industries.
These are some of the recent developments involving Teva Pharmaceutical Industries.
InvestingPro Insights
Piper Sandler's positive outlook on Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is echoed by some recent metrics and analyst expectations captured on InvestingPro. The company's market capitalization stands robust at 19.24 billion USD, reflecting its significant presence in the pharmaceutical industry. Analysts have noted that Teva's net income is expected to grow this year, which may further strengthen the company's financial position. Additionally, Teva is trading near its 52-week high, with the price hovering at 97.34% of this peak, indicating strong investor confidence and a substantial price uptick over the last six months.
InvestingPro data also reveals a healthy revenue growth of 7.23% over the last twelve months as of Q1 2024, complemented by a gross profit margin of nearly 49%. These figures suggest that Teva has maintained a solid profitability in its operations. Moreover, analysts predict that the company will be profitable this year, which aligns with Piper Sandler's projection of long-term EBITDA stability and growth potential for Teva.
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