Teva Partners With Fosun to Develop TEV-56278 Immuno-Cancer Therapy

Teva Pharmaceutical TEVA announced that it has entered into a strategic collaboration agreement with China-based Fosun Pharmaceutical to codevelop TEV-56278, an anti-PD1-IL2 ATTENUKINE therapy.

TEV-56278, initially developed by Teva, features a novel mechanism of action and has the potential to benefit patients suffering from a wide range of cancers. TEVA is currently evaluating the candidate in an early-stage study for treating various forms of cancer, including melanoma.

As part of the agreement, Teva has granted Fosun Pharma exclusive rights to develop, manufacture, and commercialize TEV-56278 in mainland China, the Hong Kong Special Administrative Region (SAR), Macau SAR, Taiwan and select Southeast Asian countries. However, TEVA retains all rights to TEV-56278 in the rest of the world, maintaining control over its development, manufacturing, and commercialization outside the licensed territories.

Year to date, shares of TEVA have plunged 22.9% compared with the industry’s 9.7% decline.

How the Partnership Deal Benefits TEVA and Fosun

Through the partnership, Teva aims to leverage Fosun Pharma’s robust oncology development expertise and commercial strength in the Chinese market to potentially broaden access to this novel therapy, pending regulatory approval. Fosun Pharma will gain from Teva’s proficiency in innovative drug development.

Anti-PD1-IL2 fusion proteins like TEV-56278 offer a novel cancer immunotherapy strategy by selectively delivering IL-2 to PD-1+ T cells. This targeted mechanism enhances anti-tumor immune responses while reducing systemic toxicity, potentially improving outcomes across multiple cancer types.

No financial consideration for the partnership deal has been disclosed in the press release.

Teva Pharmaceutical Industries Ltd. Price and Consensus

Teva Pharmaceutical Industries Ltd. price-consensus-chart | Teva Pharmaceutical Industries Ltd. Quote

TEVA’s Zacks Rank and Stocks to Consider

Teva currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Immunocore IMCR, Bayer BAYRY and Agenus AGEN. While IMCR currently sports a Zacks Rank #1 (Strong Buy), BAYRY and AGEN carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, loss per share estimates for Immunocore’s 2025 have improved from $1.50 to 86 cents. Loss per share estimates for 2026 have narrowed from $1.68 to $1.33 during the same period. IMCR stock has gained 17.6% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 76.18%.

BAYRY’s 2025 earnings per share estimate has increased from $1.19 to $1.25 for 2025 over the past 60 days, while that for 2026 has gone up from $1.28 to $1.31 over the same timeframe. Year to date, shares of Bayer have surged 61.3%.

BAYRY’s earnings beat estimates in one of the trailing four quarters, matched twice and missed on the remaining occasion, the average negative surprise being 13.91%.

In the past 60 days, Agenus’ bottom-line estimates for 2025 have significantly improved from a loss of $4.66 per share to earnings of $1.56. During the same timeframe, estimates for 2026 loss per share have narrowed from $5.02 to $1.99. AGEN stock has soared 71.5% so far this year.

Agenus’ earnings beat estimates in two of the trailing four quarters and missed the mark on the other two occasions, delivering an average negative surprise of 22.71%.

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