Teva shares soar after migraine treatment Ajovy approval
Shares in the Israeli pharma firm Teva soared on Sunday after the announcement that the US Food and Drug Administration (FDA) had approved the company’s migraine treatment Ajovy.
Having faced financial difficulties in recent years the approval may mark a turn in fortunes for the indebted Israeli drugmaker.
The go ahead was accompanied by particular jubilation due to the fact that Ajovy’s approval had been delayed for months over regulatory concerns regarding the drug’s manufacturing process, which is undertaken at a plant operated by partner Celltrion in South Korea.
While Ajovy was supposed to have been approved in June of this year, delays instilled doubts in investors, many of whom were sceptical that the drug would receive approval at all.
Nevertheless, after three years of poor performance, Teva’s shares soared, experiencing an 8.75% jump on the Tel Aviv Stock Exchange closing up at 87.27 shekels ($24.38).
The approval is especially important for Teva CEO Kåre Schultz, who joined the company in 2017, having previously taken on CEO positions at Lundbeck and Novo Nordisk. The Danish business executive, who was brought in to revitalise the failing firm, is now one step closer to finding a new source of revenue for the Ajovy manufacturer.
However, despite the fact that 39 million Americans suffer from migraines each year, the market for migraine treatments is a competitive one, and there is still much work to be done.
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