Teva turns bullish on FDA’s approval for Atomoxetine

Israel-based Teva Pharmaceutical Industries Ltd (NYSE: TEVA) reported non-GAAP net income of $1.08 billion, or $1.06 per share, on revenues of $5.630 billion in the fiscal 2017 first-quarter.

This compares with a non-GAAP net income of $1.17 billion, or $1.20 per share, on revenues of $4.810 billion in the first-quarter of fiscal 2016. The revenues in the latest quarter missed analysts estimate, while the non-GAAP earnings were in line with the Consensus estimates.

A 6% decline in Specialty medicines revenue to $2 billion disappointed the market, thereby resulting in a sell-off that took the share price to a low of $27.58.

However, the recent developments indicate the possibility of a bullish reversal in the share price.

Last week, the world’s largest generic drug manufacturer announced positive results from a Phase III HALO study of Fremanezumab, an investigational drug for migraine.

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There is only a limited availability of preventive treatment options for migraine, which is an unpredictable neurological condition with headache as the main symptom. Migraine can be chronic or episodic. Chronic migraine can sometimes lead to physical impairment. The Phase III HALO study involves a screening visit, 28-day run-in period, 12-week treatment period, and a final evaluation at week 12 visit. Later this year, Teva plans to submit a Biologics License Application to the US FDA for fremanezumab.

Teva also received US FDA’s approval for the first generic version of Strattera (atomoxetine) developed for the treatment of attention-deficit/hyperactivity disorder (ADHD) in pediatric and adult patients. The FDA approved Teva to market atomoxetine in multiple strengths. Thus, fundamentally, the FDA’s approval for atomoxetine and positive results in a Phase III HALO study of Fremanezumab is expected to turn the stock bullish in the short-term.

Technically, minor buying support exists for the stock at 27.80. The stochastic indicator reading is out of the bearish zone. That indicates a beginning of an uptrend in the share price.

In order to gain from the probable increase in the share price, we would like to purchase a high or above contract from one of our binary brokers. We would prefer a broker who offers a contract valid for one week. Additionally, we would enter only the stock trades near $28 in the NYSE.

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