Teva Pharmaceutical Industries Conference Summary Company Overview - **Company**: Teva Pharmaceutical Industries (NYSE: TEVA) - **Event**: UBS Global Healthcare Conference - **Date**: November 10, 2025 Key Highlights Industry and Company Strategy - Teva has implemented a "pivot to growth" strategy over the past three years, focusing on three phases: return to growth, accelerate growth, and maintain growth [3][4] - The company has achieved its 11th consecutive quarter of growth in Q3 2025, marking a significant turnaround after years of decline [3][4] Financial Performance - Innovative business sales exceeded $800 million in Q3 2025, representing a 33% increase year-over-year [4] - Specific product growth rates in Q3 2025: - Austedo: up 38% - Ajovy: up 19% - UZEDY: up 24% [4] - Gross margin improved from 48% in Q1 2023 to a projected range of 40%-55% due to efficiency drives and a shift in product portfolio [4][5] Product Development and Pipeline - Teva is transitioning from a generics-focused company to a biopharma company with a strong innovative portfolio [6] - Upcoming product launches include: - Olanzapine (expected launch in the second half of 2026) [38] - Duvakitug (phase three trials for ulcerative colitis and Crohn's disease) [39] - DARI (dual action rescue inhaler) with a planned market entry in 2027 [43] Market Dynamics and Competitive Landscape - Teva is focusing on increasing patient access to its products, particularly in the Austedo market, where 85% of patients are untreated [11][12] - The company is cautious about pricing strategies, maintaining discipline to avoid discounting unless necessary [30] - Teva is preparing for a more challenging payer market, emphasizing the importance of balancing value and access [12][13] Long-term Financial Guidance - Teva reiterated its 2027 revenue guidance of $2.5 billion to $3 billion for Austedo and $1.5 billion to $2 billion for its schizophrenia franchise [32][55] - The company aims for mid-single-digit compound annual growth rate (CAGR) in revenue despite the anticipated loss of Revlimid in 2026 [55] Capital Allocation and Strategic Decisions - Teva is reassessing its non-core assets, including the TAPI API business, to ensure alignment with its long-term biopharma strategy [57][58] - The company is committed to thoughtful capital allocation, focusing on investments that drive long-term value [19][61] Biosimilars and Generics - Teva is expanding its biosimilars portfolio through partnerships, aiming for over 30 biosimilars in the market [46] - The company views recent FDA simplifications in clinical trial requirements positively, believing it will not lead to a significant influx of competitors due to the high technical and financial barriers [45][46] Additional Insights - Teva's OTC business is seen as synergistic with its generics and innovative products, contributing to overall growth [60][61] - The company emphasizes the importance of understanding the patient journey and optimizing treatment pathways to enhance product uptake [9][36] This summary encapsulates the key points discussed during the conference, highlighting Teva's strategic direction, financial performance, product pipeline, and market positioning.

Core Insights - Ten large-cap stocks showed significant performance gains last week, driven by better-than-expected financial results and raised guidance for fiscal year 2025 [1] Company Performance Summary - **Globus Medical, Inc. (NYSE:GMED)**: Gained 39.79% after reporting better-than-expected Q3 results and raising FY2025 guidance [1] - **Sandisk Corporation (NASDAQ:SNDK)**: Gained 13.77% following better-than-expected Q1 results and issuing Q2 guidance above estimates [1] - **Lumentum Holdings Inc. (NASDAQ:LITE)**: Gained 15.30% after reporting better-than-expected Q1 results and issuing Q2 guidance above estimates [1] - **Datadog, Inc. (NASDAQ:DDOG)**: Gained 16.91% after better-than-expected Q3 results and raising FY2025 guidance above estimates [1] - **Expedia Group, Inc. (NASDAQ:EXPE)**: Gained 18.14% after beating Q3 earnings estimates and raising FY2025 guidance [1] - **Coherent Corp. (NYSE:COHR)**: Gained 15.82% after better-than-expected Q1 results and issuing Q2 sales guidance above estimates [1] - **Penumbra, Inc. (NYSE:PEN)**: Gained 19.58% after better-than-expected Q3 results and raising FY25 sales guidance above estimates [1] - **Teva Pharmaceutical Industries Limited (NYSE:TEVA)**: Gained 15.13% after beating Q3 earnings and revenue estimates and raising full-year EPS guidance [1] - **Madrigal Pharmaceuticals, Inc. (MDGL)**: Gained 19.90% after reporting better-than-expected Q3 sales results [1] - **DuPont de Nemours, Inc. (NYSE:DD)**: Gained 15.80% after beating Q3 earnings and revenue estimates [1]

Core Insights - Teva Pharmaceuticals presented new data from the ongoing IMPACT-TD Registry, showing that treatment with AUSTEDO and AUSTEDO XR significantly reduces the severity of involuntary movements in patients with tardive dyskinesia (TD) and improves their quality of life [1][2][6] Company Overview - Teva Pharmaceutical Industries Ltd. is a leading biopharmaceutical company with a focus on innovative medicines and a strong generics business, dedicated to improving patient health for over 120 years [21] Study Findings - The interim analysis of the IMPACT-TD Registry evaluated 27 adults with TD, revealing that 77% of participants reported improvements in their lives while on AUSTEDO or AUSTEDO XR [6][7] - Patient-reported improvements included 77% in speech/communication, 75% in eating, 65% in psychosocial impact, 59% in activities of daily living, and 50% in sleep/pain after three months of treatment [7] - The total motor score on the Abnormal Involuntary Movement Scale (AIMS) showed a mean decrease of -2.9, indicating a notable reduction in uncontrolled movements [7] Treatment Information - AUSTEDO and AUSTEDO XR are the first vesicular monoamine transporter 2 (VMAT2) inhibitors approved by the U.S. FDA for treating tardive dyskinesia and chorea associated with Huntington's disease [5][8] - The study included patients with common comorbid psychiatric disorders, such as bipolar disorder (41%), anxiety disorder (37%), depression (26%), and schizophrenia (19%), reflecting a diverse patient population [2]

Core Insights - Teva Pharmaceutical Industries reported third-quarter 2025 adjusted earnings of 78 cents per share, exceeding the Zacks Consensus Estimate of 68 cents, with a year-over-year increase of 14% driven by higher operating profits [1][7] - Revenues for the third quarter reached $4.48 billion, surpassing the Zacks Consensus Estimate of $4.35 billion, reflecting a 3% increase from the previous year on a reported basis and a 1% increase on a constant currency basis [1][7] Revenue Breakdown - The top line was supported by strong performance in branded drugs such as Austedo, Ajovy, and Uzedy, alongside increased revenues from generic products in the U.S., including biosimilars, although partially offset by lower revenues in European generics and reduced proceeds from certain product rights [2][5] - U.S. segment sales amounted to $2.48 billion, a 12% year-over-year increase, driven by higher revenues from generic products and the branded drug Austedo, exceeding the Zacks Consensus Estimate of $2.25 billion [5][7] - Generic and biosimilar product revenues in the U.S. rose 7% year over year to $1.18 billion, bolstered by the company's biosimilar portfolio [6][7] Key Product Performance - Austedo sales in the U.S. reached $601 million, up 38% year over year, primarily due to volume growth, and significantly exceeded the Zacks Consensus Estimate of $524 million [7][8] - Ajovy recorded sales of $73 million, a 27% increase year over year, surpassing the Zacks Consensus Estimate of $65 million [8] - Uzedy generated sales of $43 million, up 24% year over year, while Copaxone sales were $62 million, down 9% year over year but still beating the Zacks Consensus Estimate of $41.5 million [9] International Market Performance - The Europe segment reported revenues of $1.24 billion, down 2% year over year, with a 10% decline on a constant currency basis, missing the Zacks Consensus Estimate of $1.30 billion [10] - International Markets segment sales fell 9% year over year to $557 million, with a 10% decrease in constant currency terms, missing the Zacks Consensus Estimate of $593 million [11] Margin and Expense Analysis - Adjusted gross margin for the quarter was 55.3%, an increase of 160 basis points year over year, primarily due to higher Austedo revenues [13] - Adjusted operating income rose 6.6% year over year to $1.29 billion, with an adjusted operating margin of 28.9% [14] Guidance Updates - Teva tightened its total revenue guidance for 2025 to a range of $16.8-$17.0 billion, while raising the guidance for Austedo sales to $2.05-$2.15 billion [15][18] - The company maintained its full-year guidance for Ajovy sales at $630-$640 million and for Uzedy at $190-$200 million [18] - Adjusted EPS guidance for 2025 was raised to a range of $2.55-$2.65 per share [18]

Core Insights - Teva Pharmaceutical Industries Ltd. has shown significant stock performance, reaching a multi-year high and closing up by 20.23% at $24.60 after intra-day trading peaked at $25, driven by strong Q3 results that bolster expectations for a profitable full-year 2025 [1][3]. Financial Performance - The company reported a net income of $460 million in Q3, a remarkable 211% improvement compared to a net loss of $390 million in the same quarter last year [2]. - Revenues increased by 3.4% year-on-year, reaching $4.48 billion, up from $4.33 billion, supported by strong sales growth in its brands: Austedo (up 38%), Ajovy (up 19%), and Uzedy (up 24%) [3]. Revenue Outlook - Teva has adjusted its revenue growth outlook, lowering the upper range to $17 billion from $17.2 billion, while maintaining the lower end at $16.8 billion [4]. - The company expects adjusted EBITDA to be between $4.8 billion and $5 billion, which is an increase from the previous lower end of $4.7 billion [4].

Core Insights - Teva Pharmaceutical Industries experienced a significant stock price increase of nearly 21% following a strong quarterly earnings report, outperforming the S&P 500 index's 0.4% rise [1] Financial Performance - In Q3, Teva reported revenue of $4.48 billion, marking a 3% year-over-year increase, driven by strong sales of key medications such as Austedo, which saw a 38% increase to $618 million, and Ajovy, which rose 19% to $168 million [2] - Teva's non-GAAP net income rose by 14% to $910 million, equating to $0.78 per share, surpassing analyst expectations of $4.36 billion in revenue and $0.68 per share for non-GAAP net profit [3] Guidance Adjustments - Teva revised its full-year 2025 revenue guidance, lowering the upper end by $200 million to a range of $16.8 billion to $17 billion, while maintaining its net income forecast at $2.55 to $2.65 per share for the year [4]

Core Insights - Teva Pharmaceutical reported adjusted earnings of 78 cents per share on $4.48 billion in third-quarter sales, surpassing analyst expectations of 68 cents per share and $4.38 billion in sales [1] - The company raised its sales guidance for the drug Austedo to $2.05 billion to $2.15 billion, while lowering the low end of its full-year sales outlook by $200 million to a range of $16.8 billion to $17 billion [2] - Teva's stock surged 12% in premarket trading, breaking out of a cup-with-handle base and returning to its buy zone [3] Financial Performance - Teva's third-quarter sales of $4.48 billion represent an increase from $4.33 billion in the same period last year [1] - The adjusted earnings guidance for the full year has been raised to a range of $2.55 to $2.65 per share, compared to analyst expectations of $2.61 per share [2] Stock Market Activity - Teva's stock price increased to $22.91 after the earnings report, indicating strong market performance [3] - The stock had previously dipped below its entry point but managed to return to the buy zone, which extends up to $20.98 [3]

Core Insights - Teva Pharmaceutical Industries Ltd. reported third-quarter earnings that exceeded expectations, driven by strong sales of innovative therapies and an improved full-year outlook, resulting in a share price surge of over 17% in intra-day trading [1] Financial Performance - The company posted adjusted earnings of $0.78 per share, surpassing analyst forecasts of $0.68 [1] - Revenue increased by 3% year over year to $4.48 billion, exceeding the consensus estimate of $4.36 billion, with 1% growth in local currency [1] Innovative Medicine Portfolio - Teva's innovative medicine portfolio, including AUSTEDO, AJOVY, and UZEDY, saw segment revenue rise by 33% year over year in local currency to $830 million [2] - AUSTEDO was the primary driver of growth, achieving $618 million in global sales, reflecting a 38% increase in local currency [2] Future Outlook - Based on strong momentum, Teva raised its 2025 AUSTEDO revenue forecast by $50 million to $100 million, establishing a new target range of $2.05 billion to $2.15 billion [3] - The company tightened its full-year revenue guidance to a range of $16.8 billion to $17.0 billion and raised the low end of its adjusted EPS range to $2.55–$2.65 from $2.50–$2.65 [3] Operational Efficiency - Teva's non-GAAP operating margin improved to 28.9%, an increase of 86 basis points from the previous year, keeping the company on track to achieve its 30% target by 2027 under its "Pivot to Growth" strategy [4]

Revenue Performance - Revenues in Q3 2025 were $4,480 million, a 3% increase in U.S. dollars and 1% in local currency compared to Q3 2024, driven by higher revenues from AUSTEDO and generic products[331] - The U.S. segment generated revenues of $2,483 million, a 12% increase, and segment profit of $937 million, a 25% increase compared to Q3 2024[331] - The Europe segment reported revenues of $1,235 million, a 2% decrease in U.S. dollars and 10% in local currency, with segment profit down 19% compared to Q3 2024[331] - The International Markets segment had revenues of $557 million, a 9% decrease in U.S. dollars and 10% in local currency, with segment profit decreasing by 13% compared to Q3 2024[331] - Total revenues for the company in Q3 2025 were $4,480 million, an increase of 3% in U.S. dollars compared to Q3 2024[415] Profitability Metrics - Gross profit margin improved to 51.4% in Q3 2025, up from 49.6% in Q3 2024[331] - Operating income was $882 million in Q3 2025, compared to an operating loss of $51 million in Q3 2024[331] - Gross profit for the company in Q3 2025 was $2,304 million, a 7% increase from $2,148 million in Q3 2024, with a gross profit margin of 51.4%[417] - In Q3 2025, net income attributable to Teva was $433 million, a significant recovery from a net loss of $437 million in Q3 2024[440] - Profit from the Europe segment decreased by 19% to $303 million in Q3 2025, down from $373 million in Q3 2024, mainly due to lower gross profit and higher S&M expenses[390] Research and Development (R&D) Expenses - R&D expenses increased by 7% to $256 million in Q3 2025, compared to $240 million in Q3 2024[331] - R&D expenses in the U.S. segment for Q3 2025 were $161 million, a 6% increase from $151 million in Q3 2024[368] - R&D expenses for the Europe segment increased by 12% to $62 million in Q3 2025, compared to $55 million in Q3 2024[387] - R&D expenses for the International Markets segment decreased by 4% to $26 million in Q3 2025, compared to $27 million in Q3 2024[407] - Research and development (R&D) expenses for the United States segment in the first nine months of 2025 were $467 million, a 2% decrease from $475 million in the same period of 2024[456] Selling and Marketing (S&M) Expenses - S&M expenses in the U.S. segment for Q3 2025 were $278 million, an 8% increase from $259 million in Q3 2024, mainly due to promotional activities[369] - S&M expenses for the Europe segment rose by 11% to $225 million in Q3 2025, up from $203 million in Q3 2024, driven by exchange rate fluctuations and support for revenue growth[388] - Selling and marketing (S&M) expenses in Q3 2025 were $656 million, a 5% increase compared to Q3 2024[427] Cash Flow and Financial Position - Free cash flow generated in Q3 2025 was $515 million, down from $922 million in Q3 2024, primarily due to lower cash flow from operating activities[331] - Cash and cash equivalents decreased to $2,203 million as of September 30, 2025, down from $3,300 million as of December 31, 2024[516] - Total balance sheet assets increased to $39,856 million as of September 30, 2025, up from $39,326 million as of December 31, 2024[512] - The working capital balance improved to negative $2,419 million as of September 30, 2025, from negative $2,837 million as of December 31, 2024, primarily due to higher inventory levels and increased accounts receivables[513] - Total debt was $16,790 million, a decrease from $17,783 million as of December 31, 2024, mainly due to the repayment of senior notes[519] Currency Exposure - Approximately 41% of revenues in Q3 2025 were denominated in currencies other than the U.S. dollar, exposing the company to significant foreign currency risks[444] - In the first nine months of 2025, approximately 45% of revenues were denominated in currencies other than the U.S. dollar, exposing the company to significant foreign currency risks[506] - Exchange rate movements positively impacted overall revenues by $53 million but negatively impacted operating income by $29 million compared to the first nine months of 2024[508]

Richard Francis, Teva Pharmaceuticals CEO, joins CNBC's 'Money Movers' to discuss the company's most recent quarter, what's driving growth, and much more. ...