Teva Pharmaceutical Industries (NYSE:TEVA) saw its share price decrease by 1.67% over the past week. This decline coincided with the acceptance of the supplemental New Drug Application for UZEDY, an extended-release injectable suspension for bipolar I disorder. While this was a positive regulatory update, the broader market context showed a drop of 1.4% over the same period, driven by challenges like tariff concerns and a mixed performance among tech stocks. Despite rising at the end of the week due to benign inflation data, the overall market faced a difficult month, with Nasdaq suffering its worst decline since September 2023. This complex backdrop may have influenced TEVA's performance, intersecting with broader economic uncertainties weighing on the industry. Additionally, Sanofi's significant developments in ulcerative colitis treatments highlighted competitive pressures within the pharmaceutical sector, adding a layer of complexity to TEVA's market position.

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Over the past three years, Teva Pharmaceutical Industries achieved a significant total shareholder return of 120.64%. Despite the recent turbulence, TEVA's longer-term performance considerably exceeded the US Pharmaceuticals industry's modest 3% return over the past year. Several key factors contributed to this performance. The company's stock appears undervalued, trading significantly below analysts' fair value estimates. This discrepancy has drawn positive attention, as opinions converge on a potential price rise.

The company's value proposition is supported by a favorable Price-To-Sales Ratio compared to industry peers. Moreover, Teva's biosimilar initiatives have progressed, marked by FDA acceptance of the BLA for the AVT06 biosimilar to Eylea, which underscores potential future growth. Additionally, Teva's recent share buyback, encompassing over 57 million shares, also played a role in enhancing shareholder returns over the period.

• Understand the fair market value of Teva Pharmaceutical Industries with insights from our valuation analysis—click here to learn more.
• Uncover the uncertainties that could impact Teva Pharmaceutical Industries' future growth—read our risk evaluation here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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