Teva Pharmaceutical Industries (TEVA.TA) announced plans to release its much-anticipated biosimilar of AbbVie’s (ABBV.N) top-selling arthritis medication, Humira, within the upcoming weeks.
This announcement followed Teva’s mixed financial performance in the first quarter of 2024.
Additionally, Teva shared promising results from late-stage trials of a new schizophrenia treatment that met its primary goals, significantly boosting its shares in New York by over 13%, marking the highest level since 2019.
The U.S. Food and Drug Administration approved Teva’s Humira biosimilar, Simlandi, in February. CEO Richard Francis indicated that the launch would occur in the second quarter, stating, “I don’t have exact timetables but it’s imminent,” during a discussion with Reuters.
He highlighted ongoing discussions with pharmacy benefit managers (PBMs) and payers, suggesting a potential shift in the U.S. market towards broader adoption of biosimilars.
For 2024, two major PBMs—Cigna Group’s Express Scripts and UnitedHealth Group’s Optum RX—are covering only one or two Humira biosimilars, including the branded drug.
By 2027, Teva plans to launch six biosimilar drugs, including Simlandi and a psoriasis treatment named Selarsdi, a biosimilar of Johnson & Johnson’s Stelara, developed in partnership with Alvotech.
In the first quarter, Teva’s earnings were 48 cents per share, excluding one-time items, up from 40 cents a year earlier.
Revenue increased by 4% to $3.82 billion, slightly above the forecasts, which anticipated earnings of 51 cents per share on revenue of $3.73 billion, according to LSEG data.
The company reaffirmed its full-year revenue outlook for 2024, projecting between $15.7 billion and $16.3 billion and an adjusted EPS of $2.20 to $2.50. In 2023, Teva posted revenue of $15.8 billion and an adjusted EPS of $2.56.
Global sales of generic drugs saw a 9% increase in the quarter. Notably, U.S. sales of its Huntington’s disease treatment Austedo surged by 67%, and global sales of its migraine drug Ajovy rose by 18%.
Teva anticipates Austedo to achieve $1.5 billion in sales for 2024, alongside $500 million for Ajovy and $80 million for its newly launched schizophrenia drug Uzedy.
Glen Santangelo, a Jefferies analyst rating Teva as a “buy,” commented that the company has been undervalued for its innovative drug pipeline and is generally seen as a straightforward generic drugmaker.
He believes that the current and upcoming product launches could signify a pivotal moment for Teva.