Teva Pharmaceutical's (TEVA) Duvakitug inflammatory bowel disease drug could be validated by Merck's (MRK) upcoming Tulisokibart results, Oppenheimer said in a Friday note.

Analysts said that the best outcome for Teva is a 15-point to 20-point placebo-adjusted remission benefit from Merck that validates TL1A and supports Duvakitug's phase-3 translation.

A benefit of less than 10 points could raise class concerns, while a more than 25-point benefit with strong maintenance efficacy could weaken Duvakitug's best-in-class thesis, Oppenheimer said.

Analysts said that strong Merck efficacy could support Teva's valuation by 2% to 7%; "exceptional" efficacy could pressure Teva by about 4%; weak efficacy could drive a 7% decline in valuation.

Oppenheimer maintained an outperform rating and a $50 price target.

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