Analyst Steven Tepper reiterates his "Buy" recommendation and $55 target price for Teva.
Harel Finance analyst Steven Tepper reiterates his "Buy" recommendation for Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) and target price of $55, on the basis of its planned clinical trial of oral multiple sclerosis treatment Laquinimod in combination with another drug, as a better alternative to the intravenously administered Copaxone. >P
Tepper says that this is good news for Teva, as both Laquinimod and Copaxone have high safety profiles, and because Copaxone is effective in reducing the number of multiple sclerosis relapses while Laquinimod slows the progression of the disease.
He adds, "Since the drugs act on different mechanisms, combining them could be a winning combination, because on one hand there is a cumulative reduction in the number of relapses a year, to levels similar to BG-12 and Gilenya, while the slowing in the progression of the disease as a clear advantage over existing drugs, on the other hand."
BG-12 is Biogen Idec Inc.'s (Nasdaq: BIIB) oral treatment for multiple sclerosis and Gilenya is Novartis AG's (NYSE:NVS; LSE: NOV; SWX: NOVZ) oral treatment.
Tepper says, "There is also a clear advantage in combining Laquinimod with another drug, since if this succeeds, it will position Laquinimod as a complementary treatment, rather than as competitor to current medications."
Tepper adds, "Although the combination, if approved, is unlikely before 2017, this is good news which highlights the leadership of Teva's new CEO and his commitment to pursue the development of innovative neurological drugs, especially for multiple sclerosis."
Teva's share price rose 0.9% in premarket trading on the New York Stock Exchange today to $40.02, giving a market cap of $34.4 billion, after rising 0.2% by mid-afternoon on the TASE to NIS 154.20.
Published by Globes [online], Israel business news - www.globes-online.com - on October 11, 2012
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