Teva has been having a great time in the market for several trading sessions at this point. Much of the recent growth has been fueled by a plan to tackle migraine headaches as well as a recent analyst upgrade. Today, we'll talk about both stories, discuss what we can expect to see from the stock moving forward and how binary options traders can take advantage of the trends.
Teva Works To Tackle Migraine Headaches
Teva recently announced that it has entered into a license and product development deal that has a potential value of more than $400 million. The deal is associated with an experimental migraine headache treatment that was found by Heptares Therapeutics. According to the agreement, Teva will make an upfront payment of $10 million to Heptares therapeutics. From there, Heptares will also be entitled to up to an additional $400 million based on milestones met with regard to research, development and commercialization. As a result, Teva will receive worldwide rights with regard to development, manufacturing and commercialization of the drug. This is believed by investors and analysts to likely be an incredibly profitable move in the long run.
Teva Receives An Analyst Upgrade
Another piece of news that has investors incredibly excited with regard to Teva's stock is the fact that Goldman Sachs recently made the decision to upgrade the stock. Goldman Sachs recently upgraded Teva from a “neutral” rating to a “buy” rating. The firm gave the stock a price target of $75 per share. In their announcement of the upgrade, Goldman Sachs had the following to say…
“While new significant pipeline launches are still 2-3 years away, we expect clinical data points, starting mid-2016, to drive increased confidence, leading to the potential for P/E expansion…”
Goldman Sachs also explained that Teva isn't exposed to the pharmaceutical industry's recent pain with regard to “price gouging” because it hasn't exposed itself to major price increases.
What We Can Expect To See Moving Forward
If you've followed my writing with regard to Teva here or elsewhere, you know that I have an incredibly bullish opinion with regard to this stock. The reality is that Teva is one of the world's largest companies in the space of generic pharmaceuticals and has a decent hold with regard to building it's brand outside of generics. With their new agreement, the company is expanding further. In the world of migraines, there's quite a bit of money to be made, and Teva's smart move in getting well positioned in the treatment of migraines is incredible. Outside of that, I have to agree with Goldman Sachs in the sense that the company is essentially immune in the price gauging conversation that's currently going on in the pharmaceutical industry. The company has not yet made any decisions to make unwarranted rises in the costs of their treatments, unlike most in the pharmaceutical space. With incredible management, incredible products, and solid investor sentiment, there's no reason to expect anything but gains.
How Binary Options Traders Can Take Advantage Of The Trends
Knowing that Teva is well-positioned for growth, binary options traders have an incredible opportunity here. To take advantage of the trends, binary options traders should look for strong call option opportunities to ride the wave up to the top! Keep informed and check out the latest financial news.
What Do You Think?
Where do you think Teva is headed moving forward? Let us know your opinion in the comments below!
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