03:44 PM EDT, 06/20/2024 (MT Newswires) -- Teva Pharmaceutical Industries ( TEVA ) is "well-positioned" for further growth, even after a 130% increase over the past year, UBS Securities said in a note Thursday.

"We see three catalysts: 1) the potential divesture of the [Active Pharmaceutical Ingredients] business (TAPI), 2) the TL1a Ph2 update (go/no-go decision) in 2H24, 3) beat/raise on FY2024 financials," UBS said.

Teva expects to complete the API spin-out in the first half of 2025, with a potential deal announcement in the second half of 2024, UBS said.

UBS projects potential proceeds ranging from approximately $4.8 billion to $6.8 billion from the API divestiture, considering various valuation methodologies including implied TAPI value, EuroAPI, a stand-alone API business, as an analog, CDMO peer comparisons, and recent mergers and acquisition transactions, the note said.

UBS has a buy rating on Teva with a 12-month price target of $22.

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