Teva Pharmaceutical’s Promising TL1a Program Drives Buy Rating Amid Strong Phase 2 Data for Duvakitug

Jason Gerberry, an analyst from Bank of America Securities, reiterated the Buy rating on Teva Pharmaceutical (TEVA – Research Report). The associated price target remains the same with $23.00.

Jason Gerberry has given his Buy rating due to a combination of factors related to Teva Pharmaceutical’s promising developments in their TL1a program for inflammatory bowel disease (IBD). The recent phase 2 data for duvakitug, a novel drug with a unique mechanism of action, demonstrated strong efficacy and a favorable safety profile, comparable to top-tier biologics like Entyvio. This positions Teva well in the competitive landscape, despite being slightly behind other TL1a competitors in terms of development timeline.
Furthermore, the data showed consistent efficacy across various patient sub-groups, including those who are more challenging to treat, which enhances the drug’s potential market value. The IBD market is substantial, and duvakitug’s performance in Crohn’s disease, in particular, suggests a significant revenue opportunity. Gerberry sees Teva as undervalued given its medium to long-term growth prospects, justifying the Buy rating and a price objective of $23.

In another report released today, Barclays also maintained a Buy rating on the stock with a $26.00 price target.