Deutsche Bank Highlights 'Hidden Gem' In Teva, Says It Could Be Laquinimod

In a report published Thursday, Deutsche Bank analyst Gregg Gilbert maintained a Buy rating on

, with a price target of $73. Teva and its partner

have completed the enrollment for its third Phase study of laquinimod for relapsing remitting multiple sclerosis (RRMS). Laquinimod is a novel, once-daily oral drug that has demonstrated the potential to slow disability progression in MS patients. Analyst Gregg Gilbert pointed out, "Due to a lengthy development history marked by some disappointments, TEVA gets little to no credit for this asset." "While our model does not include value for laquinimod, we believe the asset could be an important addition to the MS market and longer-term contributor for TEVA, assuming that the CONCERTO study is successful," Gilbert added. In the report Deutsche Bank noted that Teva's emerging pipeline should make investors more confident in "life after Copaxone" while adding that "we see TEVA as a long" with or without the transaction with

. Teva's growth prospects are expected to be driven by the company's focus on strategic initiatives aimed at increasing shareholder value and an improved and simplified management structure.