Share prices in Israeli pharmaceutical giant Teva fell 7.2 percent on the Tel Aviv Stock Exchange on Monday after the company announced the failure of clinical trials for a new oral treatment for multiple sclerosis. Despite the sharp decline, turnover in Teva shares was not unusually large, and stood at NIS 111 million ($38 million). On the New York Stock Exchange, Teva stocks fell 6.3% on Monday and turnover was three and a half times the daily average, totalling $830 million. Teva had hoped to develop the oral treatment as a successor to its flagship drug, Copaxone, which is administered by injection. But on Monday Teva and its partner in the trials, Swedish company Active Biotech, announced that the latest trial, called Bravo, had not produced the desired clinical statistical results when compared with a placebo treatment. Multiple sclerosis is a chronic, debilitating inflammatory condition in which the body attacks its own central nervous system. Treatments aim to decrease inflammation and slow the body's decline. Although the trial did not achieve the desired results, Teva said Laquinimod did have an effect on the central nervous system, consistent with previous findings in the earlier Allegro clinical trial. Even after statistical adjustments were made on all three parameters in the trial, the results were still slightly too low compared with the trial publicized a few months ago, said Steven Tepper, an analyst for Harel Insurance Investments and Financial Services. He said the results of the trial were disappointing, but he added that doubts had already been raised by the previous trial. Tepper also said the fall in stock prices yesterday was disproprotionate. Last week, Teva reported that its net profit from the second quarter of 2011 was $1 billion, consistent with the same period in 2010. Teva CEO Shlomo Yanai said he expected the company to rebound in the second half of this year. Reports from early trading on Tuesday in Tel Aviv indicated that Teva share prices were recovering slightly.
Teva shares plunge 7.2% after multiple sclerosis drug trials fail
Laquinimod, intended to be Tevas new treatment for multiple sclerosis, failed to prove effectiveness • Teva shares down 7.2% in Tel Aviv, 6.3% in New York.
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