Teva Pharmaceutical Industries recently received FDA acceptance of its supplemental Biologics License Application to expand AJOVY®'s use for preventing migraines in pediatric patients, an important step with potential market impact. Despite this positive development, Teva's share price recently declined 11% over the past week. This downward movement aligns with a broader market downturn of 12% amid heightened volatility and concerns regarding proposed tariffs on pharmaceuticals. Teva's promising developments may have countered this negative trend, but broader economic uncertainties played a stronger role in its market performance.

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Over a more extended three-year period, Teva's total shareholder return, including share price and dividends, was 33.89%. This contrasts with the company's performance over the last year, where it exceeded both the US Market, which saw a 5.8% decline, and the US Pharmaceuticals industry, which experienced an 11.5% decline. This highlights Teva's relative resilience compared to broader market and industry trends.

The recent FDA acceptance of Teva’s application for AJOVY®, aimed at expanding its use, could positively influence future revenue and earnings forecasts. Such developments may drive increased market potential, particularly in pediatrics, thereby impacting projected growth.

Despite the share price's recent 11% decline, it trades at a significant discount to analysts' consensus price target of US$22.88, with expectations for substantial upside. Analysts also forecast Teva to become profitable over the next three years, reflecting optimism despite short-term volatility.

According our valuation report, there's an indication that Teva Pharmaceutical Industries' share price might be on the cheaper side.

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.

Companies discussed in this article include NYSE:TEVA.

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