2. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 58
Share Price as of June 12: $17.22
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is engaged in developing, manufacturing, marketing, and distributing generic medicines, specialty medicines, and biopharmaceutical products. The company’s portfolio has 3,600 medicines and more than 53 manufacturing facilities in over 33 countries.
In May 2023, Teva Pharmaceutical Industries Limited (NYSE:TEVA) launched its “Pivot to Growth” strategy which is showing signs of success in the company. On the Street, TEVA sports a consensus Moderate Buy recommendation and high price forecast of $22 represents a 28% upside to the current levels.
At its latest earnings call, Teva Pharmaceutical Industries Limited’s (NYSE:TEVA) management highlighted some of its innovation and pipeline advancements. The company’s long-acting Olanzapine for schizophrenia has met all primary and secondary endpoints, with significant potential due to the unmet need for long-acting treatments in this space. Additionally, the management said that the company’s anti-IL15 program targeting celiac disease is showing promise, with a potential market of 2 million patients in the U.S. alone. The early recruitment success and the rapid progression of these programs highlight Teva Pharmaceutical Industries Limited’s (NYSE:TEVA) ability to accelerate clinical development and bring new treatments to market efficiently.
Teva Pharmaceutical Industries Limited’s (NYSE:TEVA) entrance into the $33 billion biosimilars market also makes a bullish case for it. According to Mordor Intelligence, the biosimilars market is expected to be worth $35.47 billion in 2024 and grow to $82.27 billion by 2029 at a compound annual growth rate of 18.32%. On February 24, the company along with Alvotech (NASDAQ:ALVO) announced that the U.S. Food and Drug Administration (FDA) has approved their SIMLANDI (adalimumab-ryvk) injection as an interchangeable biosimilar to AbbVie Inc.’s (NYSE:ABBV) Humira, which was one the world’s top-grossing pharmaceutical products in 2023. SIMLANDI is authorized for the treatment of several conditions, including adult rheumatoid arthritis, juvenile idiopathic arthritis, adult psoriatic arthritis, adult ankylosing spondylitis, Crohn’s disease, adult ulcerative colitis, adult plaque psoriasis, adult hidradenitis suppurativa, and adult uveitis. On April 16, the FDA approved another one of the company’s biosimilars, SELARSDI (ustekinumab-aekn), which is used for the treatment of moderate to severe plaque psoriasis and for active psoriatic arthritis in adults and pediatric patients 6 years and older. It is a biosimilar to Janssen Biotech, Inc.’s STELARA.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) was part of 58 funds’ portfolios and the total stake value was $2.04 billion in the first quarter. As of Q1, Slate Path Capital is the top shareholder in the company and has a position worth $379.505 million.
Sound Shore Management made the following comment about Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its Q3 2023 investor letter:
“Away from power, drug maker Teva Pharmaceutical Industries Limited (NYSE:TEVA), a new holding, also performed well during the quarter. Teva develops, manufactures and markets generic and specialty drugs focused on neurological and respiratory diseases, as well as oncology. Following a period of poor capital allocation decisions in prior years, we were able to invest at a very attractive valuation. We now believe management has positioned the company for renewed growth, driven by its most promising branded drug pipeline in years. The investment is off to a good start and the stock gained after second-quarter results topped consensus.”
