Ecopipam

Over the first three months of the year, Teva generated revenues of roughly $4 billion, representing a 2% increase in U.S. currencies and a 3% decrease in local currency terms. While Teva Pharmaceutical’s multiyear growth streak under CEO Richard Francis showed signs of leveling off, the company still topped Wall Street estimates in 2026’s first quarter, buoyed by the impressive performance of branded drugs like Austedo, Uzedy and Ajovy. Meanwhile, with some seven additional potential readouts or regulatory decisions stemming from its innovative pipeline this year, it’s not just about beating those industry watcher estimates, “but how we beat,” Francis said in an interview with Fierce. Francis argued that the performance and pipeline catalysts lined up in the first quarter offer a signal that Teva’s pivot from pure generic specialist to fully-fledged biopharma “has really happened”—and at least one team of analysts may agree.Umer Raffat’s group at Evercore ISI wrote in a note to clients that attention is increasingly turning to Teva’s R&D darlings as the company enters a “very active phase.” Over the first three months of the year, Teva generated revenues of roughly $4 billion, representing a 2% increase in U.S. currencies and a 3% decrease in local currency terms, according to an April 29 press release. The company has been on an impressive growth track since shortly after Francis’ arrival in 2023, although the company has said it expects that rate of momentum to slow for a bit in 2026. Teva’s overall performance topped Wall Street estimates for Q1, according to Bloomberg News, which also pointed out that the company’s Huntington’s disease and tardive dyskinesia drug Austedo, its migraine med Ajovy and the multiple sclerosis therapy Copaxone bested the Street's sales predictions for the period. The company’s stock was trading up around 9.5% on Wednesday afternoon.  Breaking down the numbers, Austedo brought home $578 million over the three-month stretch, representing 41% growth in local currencies, while Ajovy grew a similar impressive 35% year-over-year to hit $196 million in Q1. The main hit Teva logged for the quarter was a generics sales decline—clocking in at 16%—which the company has been telegraphing for some time as sales of its Revlimid generic falter amid increased competition in the U.S. Elsewhere, the company’s long-acting formulation of risperidone, Uzedy, reached $63 million for the quarter, which Teva said marks the “fastest-growing long-acting injectable” in the space. In a bid to further gird its pipeline, Teva is picking up a Tourette syndrome asset that could be up for an approval decision next year via its $700 million acquisition of Emalex Biosciences, also announced Wednesday. The deal revolves primarily around ecopipam, a dopamine D1 receptor antagonist that Teva plans to file with the FDA in the second half of the year. Francis said Emalex’s asset “falls into the criteria and the strategy we laid out,” noting that ecopipam is de-risked and has passed its phase 3. Moreover, Tourette syndrome represents a significant unmet medical need. More than 100,000 children suffer from the condition in the U.S., but just around half of them are on therapy, with a much smaller proportion staying on therapy after a year, Francis said.Further, there could be an overlap between a Tourette asset and Teva’s existing familiarity with movement disorder and psychiatric spaces, thanks to Austedo and Uzedy, the CEO pointed out.Speaking of Uzedy, Francis noted the drug has “almost doubled the size of the risperidone long-acting market,” and it has also given Teva further confidence that it can continue to unlock the schizophrenia space with its long-acting formulation of olanzapine, which the FDA accepted for review in February and is expected to weigh in on late this year. And while Uzedy launched into a crowded arena, there “is no long-acting market for olanzapine,” Francis pointed out, giving Teva a fresh chance to lay the commercial foundation for its launch.  As for Teva’s dealmaking strategy going forward after Emalex, Francis reiterated that the company is “agnostic as to where things come from, internal or external,” but noted that “we like things to fall into our neuroscience capability, and so that’s what we predominantly focus on.” At the same time, Francis stressed that Teva “will not do something that we think is the wrong price or the wrong level of risk.” 

If approved, ecopipam will enter a market served by antipsychotics and the off-label use of alpha-2 adrenergic agonists. \n Teva Pharmaceuticals has struck a deal to buy Emalex Biosciences for $700 million upfront, positioning the drugmaker to advance a Tourette syndrome candidate that is on the cusp of approval.The deal centers on ecopipam, a dopamine D1 receptor antagonist that Teva expects to submit for FDA approval in the second half of the year. Emalex reported phase 3 data on the drug candidate last year, linking ecopipam to statistically significant improvements in control of vocal and motor tics compared to placebo.Teva has flagged the asset as a good fit for its capabilities, leading the company to offer the upfront and up to $200 million in commercial milestones for Emalex. On an earnings call Wednesday, CEO Richard Francis said Teva’s sales, marketing, market access and patient services capabilities can drive uptake of the molecule.  Francis cited Teva’s handling of Austedo and Uzedy, neuroscience treatments that grew 41% and 62%, respectively, in the first quarter, as evidence that the company can expand the Tourette market once it launches ecopipam. The company will hire a small pediatric sales force for ecopipam, Francis said, but will also leverage its existing expertise in movement disorders and psychiatric conditions. If approved, ecopipam will enter a market served by antipsychotics and the off-label use of alpha-2 adrenergic agonists. Francis said patients typically receive cognitive behavioral intervention therapy after presenting with symptoms, progressing to alpha-2 adrenergic agonists and later antipsychotics if needed. Yet while drugs are available, Teva is betting that none of the treatments have the right mix of safety and efficacy. Alpha-2 adrenergic agonists “are generally safe but maybe do not offer the efficacy for many patients,” Francis said. One study found that up to 61.2% of people may have discontinued treatment with the drugs within three months.  People failed by alpha-2 drugs are offered antipsychotics, but such drugs have metabolic and neurologic side effects that lead many families to discontinue or avoid the class, the Teva CEO said. Parents are hesitant to put a 10-year-old on an antipsychotic for the next decade, Francis said, and need a long-term solution for the chronic pediatric condition. By delivering meaningful efficacy with a good side effect profile, ecopipam could become a preferred later-line therapy, the Teva CEO said. Francis predicted that ecopipam’s price will reflect its profile and the rarity of the condition, which the CEO said affects about 100,000 children. Teva’s CEO declined to provide a peak sales forecast for ecopipam when asked by an analyst on the earnings call.