Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is trading considerably higher today, currently up $3.13 at $18.63 – a 20 percent gain. Before the market open this morning, the company announced that it had named Mr. Kåre Schultz as its new Chief Executive Officer.
Mr. Schultz is a successful industry veteran, having served as the CEO of H. Lundbeck A/S since 2015 – and was Chief Operating Officer of Novo Nordisk before that. The new company head will relocate to its headquarters in Israel once he begins.
“With extensive global pharmaceutical experience, a strong track record executing corporate turnaround strategies, driving growth and international expansion at low incremental cost and delivering on promises to shareholders, as well as a commitment to a culture of compliance, Kåre is the right leader to take Teva to the next level,” commented the Chairman of the company’s board of directors, Dr. Sol J. Barer.
After the news broke, Cantor Fitzgerald’s Louise Chen announced that she was reaffirming a Neutral rating on Teva’s stock and lowered her price target from $27.00 to $17.00. The analyst told investors that the announcement was good, as it is the first phase of improving visibility for the company’s road ahead.
Meanwhile, BTIG’s Tim Chiang upgraded the company from Neutral to Buy after the announcement was made. The firm currently has a price target set at $24.00.
BTIG says that the company’s lead product candidate, a migraine prevention drug called fremanezumab, has the potential to be a blockbuster product – thanks to the treatment’s flexible dosing options.
The author of this article holds no position in any of the companies mentioned above.