Teva drugs approved for emergency Covid-19 trials

Teva Photo: Sivan Faraj
Teva Photo: Sivan Faraj

The FDA is recommending controlled clinical trials for chloroquine phosphate and hydroxychloroquine to test the drugs' effectiveness in treating the virus.

The share price of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) soared 12.6% on a higher-than-average turnover yesterday on the New York Stock Exchange, after the US Food and Drug Administration (FDA) approved use of chloroquine phosphate and hydroxychloroquine for emergency treatment of Covid-19 patients. Teva, one of the companies manufacturing the drug, announced earlier this month that it would donate ten million tablets to US hospitals, including six million by the end of March.

One of the newly approved drugs is an old drug designed for treatment of malaria. The newer one has been approved for treatment of malaria, lupus, and rheumatoid arthritis patients in the case of Teva. The FDA approved the drugs as an emergency treatment, even though they admit that the clinical information about it is slight and anecdotal. The FDA is recommending controlled clinical trials to test the drugs' effectiveness in treating Covid-19, but is allowing doctors to give them to patients in cases in which they cannot participate in such a trial.

Citi wrote in response that among the companies manufacturing the drugs are Amneal, Dr. Reddy's Laboratories, Laurus Labs, Mylan, Prasco Labs, Sandoz, Teva, and Zydus Cadila. The hydroxychloroquine sulfate market in the US is dominated by generic manufacturers, and Citi says that it amounted to $230 million in 2019 (5.5 million prescriptions distributed). Teva's market share is 9.2%, putting it in fourth place in this market, after Prasco (30.5%), Sandoz (28.2%), and Zydos Cadila (14%).

It is no surprise that the number of prescriptions for the drug increased in recent weeks. According to figures provided by Citi in the first, second, and third week of March, the number of prescriptions grew by 7.4%, 7.8%, and 136.4%, respectively, in comparison with the preceding weeks. Furthermore, Citi says that India has banned the export of the drug as part of the government's effort to combat the coronavirus, which is liable to affect the Indian manufacturers.

Citi believes that despite the lack of medical proof, the two drugs are likely to help some of the patients in the shortening the duration of the disease and lessening its severity, based on existing preclinical and clinical information. They predict that dispensing the drug will be limited to hospitalized patients and kept under careful control.

With the volatility in the capital market, Teva's share price in the past three months has ranged from $6.69 to $13.45, and yesterday closed at $8.51, reflecting a $10.2 billion market cap.

Published by Globes, Israel business news - en.globes.co.il - on March 31, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Teva Photo: Sivan Faraj
Teva Photo: Sivan Faraj
groundcover founders credit: Yossi Yarom Israeli observability co groundcover raises $35m

groundcover has developed a “Bring Your Own Cloud” (BYOC) observability solution, redefining the architecture of a modern observability platform.

Tel Aviv Stock Exchange credit: Shutterstock MagioreStock Foreign investment in TASE hits five-year high

Foreign investors have been flocking to the Tel Aviv Stock Exchange in recent weeks, the TASE research department tells "Globes."

Elbit Systems tank turret systems credit: Elbit Systems Elbit Systems wins $100m tank turret systems deal

The Israel defense electronics company will supply its advanced UT30 MK2 unmanned turret systems to General Dynamics European Land Systems (GDELS) to be supplied to a NATO European country.

Tomer Weingarten Photo: PR Trump targets SentinelOne exec in act of revenge

The US administration has suspended the security clearance of the company's chef intelligence and public policy officer Chris Krebs and everyone associated with him.

Tel Aviv Stock Exchange share prices rising credit: Tali Bogdanovsky TASE opens sharply higher after Trump U-turn on tariffs

The pause is being interpreted as a climb down after US President Donald Trump admitted he had made the move to calm the markets.

Ashot Ashkelon credit: Ministry of Defense Up 250%, Ashot Ashkelon wins another Defense Ministry order

The Israeli defense company's share price has risen 250% in the past three years since FIMI Opportunity Funds acquired control.

Liad Agmon credit: Eyal Izhar Insight Partners Liad Agmon steps down as managing partner

Serial entrepreneur Agmon has served as a partner at Insight Partners Israel alongside Daniel Aronovitz who set up the Israel office.

Shekels credit: Shutterstock Vladerina32 Shekel slide resumes amid escalating tariff war

The Bank of Israel is not expected to intervene in the forex market despite the sharp depreciation of the shekel.

Nir Zuk credit: Inbal Marmari Palo Alto Networks mulls buying AI security co for $700m

Sources inform "Globes" that on Palo Alto's radar is Protect AI.

President Donald Trump hosts Prime Minister Benjamin Netanyahu credit: Reuters Kevin Mohatt Israeli officials confident on US tariff concessions

Senior Israeli figures believe that concessions could be tied to progress on strategic regional political issues that are important to President Trump.

Phoenix Investment House CEO Avner Hadad  credit: Tommy Harpaz "The market has priced in all the bad things"

Phoenix Investment House CEO Avner Hadad says US markets could continue to fall, but that we are close to interesting territory for patient investors.

Tel Aviv credit: Shutterstock Tel Aviv slips in World's Wealthiest Cities ranking

Tel Aviv's position as one of the world's wealthiest cities took a big knock over the past year as it slipped from 42nd to 48th in investment advisors Henley & Co.'s "World's Wealthiest Cities" Top 50 ranking.

Leviathan platform  credit: Albatross C'ttee seen recommending no cut in gas exports

The Dayan committee on the future of the gas sector estimates that Israel's natural gas reserves will run out in 2045.

Accountant General Yali Rothenberg credit: Rafi Kutz Israel's fiscal deficit continues to narrow

The deficit narrowed in the twelve months to the end of March 2025, for the sixth consecutive month, Ministry of Finance accountant general Yali Rothenberg reported today.

Arkia credit: Arkia Arkia cuts Tel Aviv - New York April fares

Arkia has cut fares at the last minute, a time when prices usually soar even higher, according to the pricing method used in the industry.

Bank of Israel Governor Prof. Amir Yaron credit: Dani Shem Tov Knesset Spokesperson BoI Governor: US tariffs could push up inflation in Israel

Prof. Amir Yaron tells "Globes" that there is a risk that the new tariffs will cause inflation to rise in the US, with a knock-on effect for Israel.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018