Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) announced that its subsidiary, Teva Pharmaceuticals International GmbH., has signed a global license agreement with Alder BioPharmaceuticals. The agreement validates Teva’s IP and resolves Alder’s opposition to Teva’s European Patent No. 1957106 B1, with respect to anti-calcitonin gene-related peptide (CGRP) antibodies and methods for their use. It also provides Alder with clarity for its ongoing plans in the field.
Under the terms of the agreement, Alder has received a non-exclusive license to Teva’s anti-CGRP antibodies patent portfolio to develop, manufacture and commercialize eptinezumab in the U.S. and worldwide, excluding Japan and Korea. In exchange, Alder has agreed to:
- Withdraw its appeal before the European Patent Office;
- Make an immediate one-time payment of $25 million to Teva;
- Make a second one-time payment of $25 million upon the approval of a biologics license application (BLA) for Alder’s eptinezumab with the U.S. Food and Drug Administration or of an earlier equivalent filing with a regulatory authority elsewhere in the license territory in which any Teva licensed patents exist;
- Following commercial launch of eptinezumab, pay $75 million at each of two sales-related milestones (at $1 billion and $2 billion in sales achieved in a calendar year) and provide certain royalty payments on net sales at rates from 5% to 7%.
“This agreement reinforces the broad coverage provided by Teva’s IP in the field of anti-CGRP antibodies therapy. At the same time, it also helps facilitate the ongoing development of additional potential therapies in this exciting field – this can only be good for our increased understanding of the area and ultimately improved patient wellbeing”, said Marcelo Bigal, M.D., Ph.D., Chief Scientific Officer and Head of Specialty R&D at Teva.
Shares of Teva closed on Friday at $19.22, down $0.36 or -1.84%. TEVA has a 1-year high of $37.94 and a 1-year low of $10.85. The stock's 50-day moving average is $16.63 and its 200-day moving average is $19.50.
On the ratings front, Teva stock has been the subject of a number of recent research reports. In a report issued on January 5, Wells Fargo analyst David Maris downgraded TEVA to Sell, with a price target of $17, which implies a downside of 12% from current levels. On the other hand, on January 4, Citigroup's Liav Abraham upgraded the stock to Buy and has a price target of $24.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, David Maris and Liav Abraham have a yearly average loss of -7.0% and a return of 7.8% respectively. Maris has a success rate of 37% and is ranked #4541 out of 4754 analysts, while Abraham has a success rate of 50% and is ranked #1520.
Sentiment on the street is mostly neutral on TEVA stock. Out of 22 analysts who cover the stock, 13 suggest a Hold rating , 5 suggest a Buy and 4 recommend to Sell the stock. The 12-month average price target assigned to the stock is $18.41, which represents a slight downside potential from current levels.
Teva Pharmaceutical is a global pharmaceutical company, which provides patient-centric healthcare solutions. It operates through two segments: Generic Medicines and Specialty Medicines. The Generic Medicines segment includes chemical and therapeutic equivalents of originator medicines in a variety of dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments and creams. The Specialty Medicine segment engages in the provision of core therapeutic areas of central nervous system medicines.
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