Teva Pharmaceutical Industries Ltd. (TEVA) stock surged by 5% in the intraday trading session on Wednesday, driven by promising results from a mid-stage study on its investigational anti-TL1A therapy, duvakitug, for the treatment of inflammatory bowel diseases (IBD) such as Ulcerative Colitis and Crohn's disease.

The Phase 2b RELIEVE UCCD study, conducted in collaboration with Sanofi (SNY), met its primary endpoints for both diseases. For Ulcerative Colitis, up to 47.8% of patients receiving the high dose of duvakitug achieved clinical remission, compared to 20.45% for placebo. In the Crohn's disease group, up to 47.8% of patients on the high dose achieved endoscopic response, versus 13% for placebo.

Buoyed by these positive results, which analysts highlighted as exceeding investor expectations, several firms raised their price targets on Teva stock. Barclays lifted its target to $28 from $25, while UBS increased its target to $28 from $26, citing duvakitug's potential and Teva's potential sale of its active pharmaceutical ingredients business as potential catalysts for further upside in 2025.