Teva has posted a quarterly profit of $8.6 billion, the biggest for the company, as it seeks to expand its portfolio of generics to patients around the world.
The company said its earnings per share topped $2.90 on a net loss of $9.6 million, while revenue increased 2.2% to more than $23 billion.
The Nasdaq composite index SPX, +0.40% rose $2,062.75, or 1.4%, to 1,876.70.
The Dow Jones Industrial Average DJIA, +1.00% rose 6.15 points, or 0.8%, to 20,821.13.
Nasdaq Composite Index COMP, +2.18% rose 3.4 points, Ormsby’s Pimco Holdings Inc. PIMX, -0.53% rose 2.3 points, and the Russell 2000 index SPY, -2.05% rose 1.6 points.
The Standard & Poor’s 500 index SPLC, -1.40%, rose 0.6%.
Teva shares rose about 9% in after-hours trading.
In a tweet posted at 8:30 p.m., Teva CEO Stephen Gavigan said the stock is trading at a “record low” due to the “surge in demand” for the generics, which have been widely hailed as a boon for the embattled drug maker.
In an interview with CNBC, Gavigans co-founder and CEO Peter Diamandis said the surge in demand has been a “major driver” of Teva’s success, and that the company is “very focused on growing its portfolio.”
Diamands said the company has had a “great time” with the surge of demand, and added that it expects “a long-term growth trajectory” from the generals.
Teva reported earnings of $1.3 billion, up from $857 million a year ago.
The stock closed at $4,948.12 in midday trading on Friday.
Shares of Tevas Pharmaceuticals fell 8.7% to close at $3,739.84.
Diamandises said the generic market is a “challenge for us, because it’s such a new product, but the market has responded very well.”
He added that he expects the generas to “grow to a much larger market share than we had anticipated.”
In an interview on CNBC, Diamandi said the growth of the genera has been driven by patients seeking lower-cost generics that they can take to the doctor, and not necessarily the generative drugs themselves.
“The idea that we could have generics and not generatives, I think is a myth,” Diamandais said.
“We have generas that are in the pipeline, and I think they’re going to be very successful.
I think there’s a tremendous amount of excitement about generics in this country.”
The Teva stock had a run-up in early trading, as Teva and its competitors boosted their sales in a bid to catch up to Teva.
In mid-morning trading, Teva had $4 billion in revenue.
Gavigan had been in talks with the FDA to allow generic drug makers to market their products on the same day as Teavas generic versions, which could give patients the option to get their prescriptions at home.
The FDA has said that it is not ready to allow this type of practice, saying it is too early to determine the safety and effectiveness of the new versions.
Earlier this month, Teavans generic version of the drug Daraprim, the only one that can be approved by the Food and Drug Administration, lost FDA approval after several studies showed the drug can cause serious side effects including kidney failure.
While the Teva drug is widely hailed, it is also facing stiff competition from generics.
Teva’s drug, Seroquel, was approved for the treatment of severe Crohn’s disease in December, but a number of other generics are on the market, including Novartis’ Aleve, AstraZeneca’s Ovamune and Pfizer’s Pfizera.
Last month, the FDA announced that it would allow generics on the label of a drug, and will allow generic formulations on prescription medications, including Teva drugs, after a review of its existing product guidelines.