Teva, Sanofi shares to outperform after TL1A announcement, says Morgan Stanley

Morgan Stanley analyst Thibault Boutherin expects Sanofi (SNY) and Teva (TEVA) shares to outperform after the pair announced a collaboration to co-develop and co-commercialize Teva’s TL1A asset TEV ‘574, currently in Phase 2b clinical trials for the treatment of Ulcerative Colitis and Crohn’s Disease. The firm views the collaboration as “synergistic between the two companies,” noting that Sanofi is “building a commercial powerhouse in immunology,” while Teva will benefit from the support of a development and commercial partner focused on immunology to maximize its TL1A asset and share development costs. The firm has an Equal Weight rating and $10 price target on Teva shares.