Teva: Biosimilar to Humira Finally Seals US Approval; Looks to Be Best in Class in a Crowded Market

No-moat Teva Pharmaceuticals announced on Feb. 23 that Simlandi, its biosimilar to Humira (adalimumab), has received US Food and Drug Administration approval with an expected imminent launch date. Simlandi is approved for a several indications, including the treatment of rheumatoid arthritis, psoriatic arthritis, and Crohn’s disease. Simlandi was developed and manufactured by Alvotech, while Teva is responsible for commercialization. Teva entered into a partnership with Alvotech, a biologics manufacturer specializing in biosimilars, in 2020; the two firms have a number of other biosimilars in the pipeline. We maintain our fair value estimate of $13.50 per share for Teva.