Teva Pharmaceutical Industries Ltd (ADR) ADR (NYSE: TEVA) is having an incredibly strong start to the trading session this morning, and for good reason. The comapny announced that the FDA has approved a New Drug Application, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The FDA approval;
- what we’re seeing from TEVA as a result; and
- what we’ll be watching with regard to the stock ahead.
TEVA Announces FDA Approval
As mentioned above, Teva Pharmaceutical Industries is having an incredibly strong start to the trading session this morning after the company announced an FDA approval. Over the weekend, TEVA issued a press release informing investors that the United States Food and Drug Administration (FDA) has approved AJOVY(TM) injections for the prevention of migraine headaches in adults.
AJOVY is a humanized monoclonal antibody designed by TEVA that binds to calcitonin gene-related peptide (CGRP) ligand and blocks it from binding to the receptor. The treatment is now the first and only anti-CGRP treatment that has been approved for the prevention of migraine headaches.
In the release, Teva said that the United States Wholesale Acquisition Cost (WAC) of the treatment is $575 per monthly dose and $1,725 per quarterly dose. The treatment is expected to be available through both retail and specialty pharmacies within the next two weeks. In a statement, Kåre Schultz, President and CEO at TEVA, had the following to offer:
This is an important day for Teva and complements our long-standing history of helping patients living with diseases of the central nervous system… The approval of AJOVY helps us to continue to provide access to important medicines and to deliver on our commitment to our key stakeholders – patients, employees and shareholders.
The above statement was followed up by Hafrun Fridriksdottir, Executive Vice President of Global R&D at TEVA. Here’s what he had to offer:
With limited availability of preventive treatment options, AJOVY provides physicians with an important new option for their patients… This approval furthers our ongoing commitment and experience in neurological conditions like migraine.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Teva Pharmaceutical Industries, the news proved to be overwhelmingly positive. After all, the company’s FDA approval means that flood gates are opening to a new stream of revenue. So, it comes as no surprise that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:08), TEVA is trading at $24.52 per share after a gain of $1.67 per share or 7.31% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TEVA. In particular, we’re interested in following the story surrounding the AJOVY treatment and its sales volume as the company begins to commercialize it. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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