Teva Stock Up ~27% YTD in 2018: What’s Driving the Stock Rally?



Teva’s recent trading activity

On June 13, Teva Pharmaceutical Industries (TEVA) ended the trading day at a closing price of $24.33. On the day, the stock was trading ~124.0% higher than its 52-week low of $10.80, which it reported on November 2, 2017. TEVA stock was trading ~28.0% lower than its 52-week high of $33.80 reported on July 13, 2017.

Currently, TEVA stock is trading higher than its 50-day moving average of $20.52 as well as its 200-day moving average of $19.05. Over the last week, Teva Pharmaceutical Industries stock rose ~11.6%, and it has risen ~24.4% over the last month.

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Major events that triggered Teva’s recent stock rally

On May 24, TEVA stock rose ~2.3%, triggered by the news of a patent litigation settlement between Amarin (AMRN) and Teva. This settlement was related to the generic version of Amarin’s fish oil product Vascepa. On the same day, Teva’s 12-month target price was increased $13.00 to $20.00 by Barclays.

On May 23, Teva announced that it has received a September PDUFA (Prescription Drug User Fee Act) date for its much-awaited migraine drug fremanezumab from the FDA. TEVA stock rose ~1.5% on the day.

On May 15, Teva stock registered a stock price increase of ~10.0% on the news that Berkshire Hathaway increased its holdings in Teva Pharmaceutical Industries during the first quarter.

On May 14, Teva stock rose ~5.5%, triggered by the news that rival Perrigo (PRGO) is expecting a delay in the FDA approval for its generic version of Teva’s asthma inhaler ProAir. On May 3, Teva’s stock price rose on its strong first-quarter earnings results and said that its restructuring plans are on track.

Comparison with industry and market performances

Over the last year, Teva Pharmaceutical has registered a decline of 21.1% in its stock price. Over the last three months, the stock has risen ~23.2%. Year-to-date, Teva stock has risen ~26.8%. In comparison, the healthcare industry (XLV) reported a year-to-date return of ~3.0% on June 13.

On June 13, Teva’s peers Pfizer (PFE), GlaxoSmithKline (GSK), and Mylan (MYL) registered year-to-date stock price returns of 0.22%, 16.2%, and -1.1%, respectively.

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