TEL AVIV – Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) announced its decision to appeal against the European Commission's recent ruling related to its multiple sclerosis drug, COPAXONE®. The company expressed strong disagreement with the Commission's legal theories, which it considers untested and unsupported by facts.
The Israeli-based pharmaceutical giant has been cooperating with the European Commission's investigation since 2019 and is prepared to defend its position vigorously. Teva is confident in its financial ability to support the legal challenge. The firm maintains that its practices are lawful and ethical, emphasizing its commitment to the multiple sclerosis (MS) community, which it has been supporting since 1996.
Teva's response comes after the European Commission concluded an investigation into the company's marketing practices for COPAXONE®, which is widely used in the treatment of MS. While the specifics of the Commission's findings and the imposed penalties were not disclosed, Teva's statement indicates a deep disappointment with the outcome.
The company reassured that its focus on providing access to COPAXONE® for patients and their families would not waver in light of the Commission's decision. Teva highlighted its role as a key partner in Europe's healthcare ecosystem, contributing to patient care and the economy.
In its defense, Teva emphasized adherence to the highest ethical standards in all its dealings, especially in the highly regulated pharmaceutical industry. The appeal process is expected to be a significant next step in the ongoing legal discourse between Teva and the European Commission.
The information for this report is based on a press release statement from Teva Pharmaceutical Industries Ltd.
In other recent news, Teva Pharmaceutical Industries Ltd reported an 11% increase in its second-quarter revenue for 2024, reaching $4.2 billion. Barclays has updated its outlook on Teva, forecasting significant sales potential for Teva's TEV-749, a product expected to generate over $1 billion in sales. The firm also revised its estimates for UZEDY, another drug in Teva's portfolio, now expecting it to reach sales of $250 million by 2030.
On the legal front, Teva settled U.S. disputes amounting to $450 million and reached an $80 million settlement with the city of Baltimore over opioid litigation. Meanwhile, Exelixis (NASDAQ:EXEL) secured patent protection for its cancer drug, Cabometyx, until 2030, leading Morgan Stanley to raise its price target for Exelixis.
Immuneering Corporation received orphan drug status from the FDA for its pancreatic cancer drug candidate, IMM-1-104, following promising initial Phase 2a trial results. Lexaria Bioscience (NASDAQ:LEXX) Corp. reported positive outcomes from its WEIGHT-A24-1 animal study, showing promising results for DehydraTECH-liraglutide and certain DehydraTECH-CBD formulations in promoting weight loss. These are the recent developments involving Teva Pharmaceuticals, Exelixis, Immuneering Corporation, and Lexaria Bioscience Corp.
InvestingPro Insights
As Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) prepares to challenge the European Commission's ruling, investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, Teva's market capitalization stands at $20.87 billion, reflecting its significant presence in the pharmaceutical industry.
The company's stock has shown remarkable strength, with a one-year price total return of 116.67% as of the latest data. This performance aligns with an InvestingPro Tip indicating that Teva has experienced a "high return over the last year." Additionally, the stock is trading near its 52-week high, with the current price at 97.43% of that peak, suggesting strong investor confidence despite regulatory challenges.
Teva's revenue for the last twelve months reached $16.29 billion, with a notable revenue growth of 8.48% over the same period. This growth trajectory is particularly relevant as the company faces legal hurdles, as it demonstrates Teva's ability to expand its business operations amidst regulatory scrutiny.
InvestingPro Tips also highlight that net income is expected to grow this year, and analysts predict the company will be profitable. These projections could provide some reassurance to investors concerned about the potential financial impact of the European Commission's ruling and the subsequent appeal process.
For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Teva, providing a deeper understanding of the company's financial health and market position.
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