Oppenheimer analyst Derek Archila notes that Momenta (MNTA)/Sandoz announced their contract fill/finish manufacturing partner Pfizer (PFE) received an FDA warning letter for its facility that is part of the companies' Copaxone supply chain. While they stated it will not impact the generic Copaxone 20mg product, the warning letter will have to be resolved ahead of an approval of their 40mg application, the analyst says. Archila continues to view Momenta/Sandoz's generic Copaxone 40mg as the most likely to reach the market in the near-term. The news is a modest positive for Teva (TEVA), but there remains risk of a generic 40mg approval from other generic filers, he adds. Archila reiterates an Outperform rating on Teva's shares.

Bullish option flow detected in Pfizer with 50,393 calls trading, 2x expected, and implied vol increasing over 2 points to 28.83%. Sep-24 27.5 calls and Mar-25 42.5 calls are the most active options, with total volume in those strikes near 27,600 contracts. The Put/Call Ratio is 0.21. Earnings are expected on May 1st.