Teva and Sanofi Announce Positive Results from Duvakitug Clinical Trial
Teva (TEVA) and Sanofi (SNY) announced positive results from the RELIEVE UCCD long-term extension study of duvakitug, an investigational human monoclonal antibody targeting TL1A, which showed durable clinical and endoscopic efficacy maintained over 44 weeks in patients with ulcerative colitis, or UC, and Crohn's disease, or CD, that initially responded to the induction phase. UC and CD are the two most common forms of inflammatory bowel disease, or IBD. These longer duration data reinforce the efficacy from the RELIEVE UCCD phase 2b induction study, which demonstrated that patients achieved clinically meaningful response with duvakitug compared to placebo at week 14. At week 44 of the maintenance period, in UC, 58% of the 900 mg patients and 47% of the 450 mg patients treated with duvakitug achieved the primary endpoint of clinical remission. In CD, 55% of the 900 mg and 41% of the 450 mg dosage legs of patients treated with duvakitug achieved the primary endpoint of endoscopic response. In both UC and CD, consistent benefits were observed across additional efficacy endpoints. Both doses of duvakitug were well tolerated.
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- Earnings Beat: Teva Pharmaceutical's fiscal Q4 2025 revenue reached $4.71 billion, reflecting an 11.4% year-over-year growth that exceeded Wall Street estimates by $385.8 million, showcasing strong performance from innovative brands like AUSTEDO, AJOVY, and UZEDY, which collectively surpassed $1 billion in revenue for the first time.
- Analyst Rating Upgrade: Goldman Sachs analyst Matthew Dellatorre reiterated a Buy rating on Teva, raising the price target from $36 to $45, indicating strong market confidence in the company's growth potential, while Trust Financial also increased its target from $36 to $38, reflecting a positive outlook among analysts.
- Stock Price Surge: Teva's stock has surged over 105% in the past year, driven by the resolution of key challenges and improved execution across its portfolio; despite trading above historical multiples, the valuation remains attractive due to enhanced business profile, revenue growth, and debt reduction.
- Future Growth Potential: Analysts at Truist highlight that Teva is in the early stages of expansion, with an FDA decision on Olanzapine LAI potentially yielding a $3 billion peak sales opportunity, further boosting investor confidence in the company's future prospects.
- Long-Term Efficacy: The RELIEVE UCCD LTE study demonstrated that duvakitug maintained robust efficacy over 44 weeks in ulcerative colitis (UC) and Crohn's disease (CD) patients, with 58% of the 900mg group achieving the primary endpoint of clinical remission, highlighting its potential in IBD treatment.
- Good Safety Profile: The safety of duvakitug was consistent with prior induction studies, with the most common adverse events being upper respiratory tract infections and nasopharyngitis, each occurring in over 5% of patients, indicating good tolerability of the drug.
- Clinical Research Progress: The study enrolled 130 patients who entered a 44-week maintenance period, where they were re-randomized to receive either 450mg or 900mg of duvakitug, further validating its efficacy and safety in treating IBD.
- Future Development Outlook: Teva and Sanofi are advancing duvakitug into phase 3 clinical trials, expected to provide new treatment options for IBD patients, reinforcing duvakitug's position as a leading TL1A-targeted therapy.
- Investment Strategy Shift: David Einhorn invested tens of millions in Q4 2025 to increase stakes in Graphic Packaging and Capri Holdings by over 70%, reflecting his concerns about AI-driven market overvaluation and indicating a strategic pivot away from big tech.
- Stock Performance Volatility: Despite Graphic Packaging's shares dropping about 23% in Q4 2025 and over 44% for the year, Wall Street analysts remain optimistic, with an average price target suggesting more than 35% upside, indicating expectations for a rebound in the stock.
- Healthcare Investments: Einhorn more than doubled his position in Acadia Healthcare to over $58 million, despite a 43% plunge in Q4; however, analysts maintain a buy rating with a price target suggesting over 16% upside in the next 12 months, reflecting confidence in its recovery.
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- Significant Clinical Efficacy: The RELIEVE UCCD study by Teva and Sanofi revealed that 58% (900mg) and 47% (450mg) of ulcerative colitis patients achieved clinical remission, while 55% (900mg) and 41% (450mg) of Crohn's disease patients reached endoscopic response, indicating duvakitug's potential to transform IBD treatment.
- Good Tolerability: Among 130 patients, both doses of duvakitug demonstrated good tolerability with no severe adverse reactions reported during the 58-week treatment, enhancing the drug's market prospects and patient acceptance.
- Market Performance Analysis: Teva's stock is currently priced at $34.94, trading 6.3% below its 20-day simple moving average, indicating some short-term pressure; however, it has surged 105.07% over the past 12 months, nearing its 52-week high, reflecting market confidence in its long-term potential.
- Optimistic Analyst Ratings: Teva's stock carries a Buy rating with an average price target of $31.75, with Goldman Sachs raising its target to $45, and Barclays and Scotiabank adjusting theirs to $38 and $40 respectively, showcasing analysts' confidence in its future growth.
- Significant Clinical Outcomes: Teva and Sanofi's TL1A antibody duvakitug demonstrated sustained clinical and endoscopic benefits through 44 weeks in ulcerative colitis and Crohn's disease patients, reinforcing efficacy seen in the RELIEVE UCCD phase 2b study.
- Robust Study Design: The RELIEVE UCCD LTE is a double-blind randomized study focused on evaluating the long-term efficacy, safety, and tolerability of duvakitug in these common inflammatory bowel diseases, ensuring the reliability and scientific rigor of the data.
- Positive Market Reaction: Teva's shares rose 2.7% in premarket trading, while Sanofi gained 0.46%, indicating a favorable investor response to the study results, which could enhance future market performance.
- Strategic Implications: The study results not only solidify duvakitug's market potential but may also provide new growth momentum for Teva and Sanofi in the inflammatory bowel disease sector, further advancing their positioning in the biopharmaceutical market.
- Teva's Positive Outlook: Goldman Sachs analysts assert that despite Teva's stock doubling over the past year, its current valuation remains attractive, and the company is on a rapidly ascending earnings trajectory, urging investors to remain calm and accumulate shares.
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- Nvidia's Market Focus: Goldman expects Nvidia to report strong results in its upcoming earnings, with investors keenly watching for insights into 2027 visibility and competitive dynamics, despite high expectations for outperformance.








