SNY, TEVA Stocks Jump on Encouraging Data From IBD Drug Study

Core Insights - Sanofi and Teva Pharmaceuticals announced positive results from the phase IIb RELIEVE UCCD study for their investigational anti-TL1A therapy, duvakitug, targeting Ulcerative Colitis (UC) and Crohn's disease (CD) [1][2] - The study met its primary endpoints for both UC and CD, showing significant clinical remission and endoscopic response rates compared to placebo [2][3] Company Performance - Sanofi's stock rose nearly 7% following the announcement, although it has seen a year-to-date decline of 1.6% against the industry's 5.3% growth [5] - Teva's shares jumped 26%, reaching a six-year high of $21.05, with a year-to-date market value increase of 100% compared to the industry's 11.2% growth [7] Partnership Terms - Sanofi and Teva have a partnership where Teva leads commercialization in Europe and other specified regions, while Sanofi handles North America, Japan, and other parts of Asia [9] - Both companies will share development costs and net profits, with Sanofi making an upfront payment of $500 million to Teva and being eligible for up to $1 billion in milestone payments [10] Market Competition - The IBD market is highly competitive, with key players including Johnson & Johnson and AbbVie, which have strong portfolios of immunology drugs [11][12] - Johnson & Johnson's Stelara and Tremfya have generated significant sales, with Stelara alone bringing in over $8 billion in the first nine months of 2024 [13][14] - AbbVie has also seen success with its products Skyrizi and Rinvoq, generating nearly $10 billion in sales in the same period [15][16] Regulatory and Future Plans - Sanofi and Teva plan to initiate a late-stage study for duvakitug based on the positive results and will present detailed findings at a medical meeting next year [3]