What is the current valuation of Teva Pharmaceutical Industries’s Ustekinumab Biosimilar

The revenue for Ustekinumab Biosimilar is expected to reach an annual total of $342 mn by 2026 globally based off GlobalData’s Revenue Model. The drug’s revenue forecasts along with estimated costs are used to measure the value of an investment opportunity in that drug, otherwise known as net present value (NPV). Applying the drug’s phase transition success rate to remaining R&D costs and likelihood of approval (LoA) to sales related costs provides a risk-adjusted NPV model (rNPV). The rNPV model is a more conservative valuation measure that accounts for the risk of a drug in clinical development failing to progress.

Ustekinumab Biosimilar Overview

ustekinumab biosimilar is under development for the treatment of crohn disease plaque psoriasis, psoriatic arthritis and ulcerative colitis. The drug candidate is a biosimilar developed based on Smart Factory GMP manufacturing technology. It is administered through subcutaneous route. The drug candidate acts by targeting interleukin 12 subunit beta and interleukin 23 subunit alpha.

Teva Pharmaceutical Industries Overview

Teva Pharmaceutical Industries (Teva) discovers, develops, manufactures, and commercializes generic and specialty medicines. The company provides specialty medicines to treat disorders of the central nervous system (CNS), cancer, respiratory, dermatology, women’s health, and other disease conditions. It offers generic medicines in a range of dosage forms including capsules, tablets, injectables, liquids, inhalants, creams, and ointments. Teva also provides over-the-counter (OTC) products, besides active pharmaceutical ingredients (APIs). It also focuses on developing generic drugs. The company conducts its worldwide operations through a network of subsidiaries in regions such as North America, Europe, and International Markets. Teva is headquartered in Tel Aviv, Israel.

The company reported revenues of (US Dollars) US$14,925 million for the fiscal year ended December 2022 (FY2022), a decrease of 6% over FY2021. The operating loss of the company was US$2,099 million in FY2022, compared to an operating profit of US$1,716 million in FY2021. The net loss of the company was US$2,353 million in FY2022, compared to a net profit of US$417 million in FY2021.
The company reported revenues of US$3,661 million for the first quarter ended March 2023, a decrease of 5.7% over the previous quarter.

For a complete picture of Ustekinumab Biosimilar’s valuation, buy the drug’s risk-adjusted NPV model (rNPV) here.

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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

To create this model, GlobalData takes into account factors including patent law, known and projected regulatory approval processes, cash flows, drug margins and company expenses. Combining these data points with GlobalData’s world class analysis creates high value models that companies can use to help in evaluation processes for each drug or company.

The rNPV method integrates the probability of a drug reaching a clinical stage into the cash flow at that time, which provides a more accurate valuation, as it considers the probability that the drug never makes it through the clinical pathway to commercialization. GlobalData’s rNPV model uses proprietary likelihood of approval (LoA) and phase transition success rate (PTSR) data for the indication in the highest development stage, which can be found on GlobalData’s Pharmaceutical Intelligence Center.