Teva Pharmaceutical Industries' (TEVA) Weltruza approval removes the label risk that defined the long-acting olanzapine debate, leaving launch execution as the key question, Oppenheimer said in a note Friday.

With no REMS, no post-injection observation requirement and no boxed warning for post-injection delirium sedation syndrome, Weltruza is the first practical olanzapine LAI, the firm said.

Oppenheimer expects a quiet first half of 2027 focused on sampling, hospital formularies and state-by-state Medicaid additions, with meaningful revenue in the second half. It said the launch should be judged on samples, formulary wins and prescriptions, not early sales.

The $3,950 monthly list price, 47% above Oppenheimer's initial assumption, signals Teva's confidence in the profile, the firm said. It assumes a 40% gross-to-net discount and flagged rebate depth as the key variable through 2027.

Oppenheimer raised its price target to $52 from $50 and reiterated its outperform rating.

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