Sanofi (SNY) Signs Deal to Co-Develop Teva's IBD Candidate
Sanofi SNY announced a strategic collaboration with Teva Pharmaceuticals TEVA to co-develop and co-commercialize TEVA’s novel anti-TL1A therapy, TEV’574, for the treatment of Ulcerative Colitis and Crohn's disease, which are the two types of inflammatory bowel disease (IBD).
Per the terms of the agreement, Sanofi will make an upfront payment of $500 million (€469 million) to Teva, along with additional payments of up to $1 billion (€940 million), upon achieving certain developmental and launch-based milestones.
TEV’574 is currently in phase IIb development for the treatment of Ulcerative Colitis and Crohn's Disease, collectively known as IBD, for which there is a high unmet medical need. Both Sanofi and Teva believe that the investigational candidate, TEV’574, has the potential to become a best-in-class option for people living with IBD. Initial data from the studies are expected in 2024.
Year to date, shares of Sanofi have gained 10.6% compared with the industry’s 4.2% rise.
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The collaboration agreement states that Sanofi and Teva will equally share the development costs of TEV’574 globally, as well as net profits and losses in major markets. In other markets, SNY will be liable to make tiered royalty payments to Teva on the net sales of TEV’574. Sanofi will lead the upcoming phase III development program for TEV’574.
Year to date, shares of Teva have gained 5.2% compared with the industry’s 27.3% rise.
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Furthermore, Teva will lead the commercialization of TEV’574 in Europe, Israel and specified other countries, while SNY will have exclusive rights to lead the commercialization of TEV’574 in North America, Japan, other parts of Asia and the rest of the world.
The closing of the transaction is subject to meeting certain customary closing conditions.
Per Sanofi, approximately 10 million people worldwide live with IBD. This condition is characterized by the chronic inflammation of the gastrointestinal tract and could lead to serious damage if left untreated for a prolonged period. Common symptoms of IBD include persistent diarrhea, rectal bleeding, abdominal pain, fatigue and weight loss.
Sanofi Price and Consensus
Sanofi price-consensus-chart | Sanofi Quote
Zacks Rank and Stocks to Consider
Currently, Sanofi has a Zacks Rank #3 (Hold), while Teva has a Zacks Rank #4 (Sell).
Some top-ranked stocks in the overall medical sector are Corcept Therapeutics CORT and Better Therapeutics BTTX, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 30 days, the Zacks Consensus Estimate for Corcept’s 2023 earnings per share has remained constant at 78 cents. The estimate for Corcept’s 2024 earnings per share has also remained constant at 83 cents. Year to date, shares of CORT have gained 28.8%.
CORT’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 6.99%.
In the past 30 days, the Zacks Consensus Estimate for Better Therapeutics’ 2023 loss per share has remained constant at 98 cents. During the same period, Better Therapeutics’ 2024 loss per share has also remained constant at 80 cents. Year to date, shares of BTTX have lost 68.4%.
BTTX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 24.22%.
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Sanofi (SNY) : Free Stock Analysis Report
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