Teva share price at 6-year high after trial results

Market value for Teva Pharmaceutical Industries Limited (New York Stock Exchange: Tifa; level: Tifa Yesterday, it rose by $5 billion, after the stock price jumped 26%. The sharp rise has once again made Teva the most valuable Israeli company on Wall Street, with a market capitalization of $23.7 billion — the highest level in six years. The stock price opened 1.34% higher on the New York Stock Exchange today, giving it a market cap of $24 billion.

The dramatic rise is another peak in Teva’s recovery over the past year and rewards investors after a long period of disappointment. Over the past year, Teva has doubled its market capitalization and now trades at a value three times higher than its 2020 low, a low that was nearly repeated in the summer of 2022.

The recent jump in the share price follows the publication of the results of a successful phase 2b trial for Docavitog, which it is developing in collaboration with Sanofi, to treat ulcerative colitis and Crohn’s disease, the two most common forms of inflammatory bowel diseases. The endpoint results in ulcerative colitis and Crohn’s disease for high doses represent the highest results achieved with any TL1A monoclonal antibody. Eric Hughes, Teva’s global head of research and development and chief medical officer, said the study results exceeded expectations.

The biggest beneficiaries “on paper” of the jump in Teva’s share price are several Israeli corporate bodies. There is currently only one party with an interest in Teva – Fidelity Management & Research (FMR), which holds a 5.5% stake, and which rose $274 million yesterday to $1.3 billion. According to data from SmartBull, which has developed systems for capital market analysis, Israeli institutional investors with significant stakes in Teva include Menora Mivtachim with shares worth $544 million, Clal Insurance with shares worth $491 million, and Migdal with shares worth $480 million. Kalal said: “The members benefited from a profit of 530 million shekels from the rise in the share price after the results of the experiment were published.”

Published by Globes, Israel Business News – en.globes.co.il – on December 18, 2024

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