Teva's Innovative Portfolio Fuels 10th Consecutive Quarter of Growth in Q2 2025; Increases 2025 Revenue Outlook for Key Innovative Products and EPS, and Reaffirms All Other Components

Core Insights - Teva Pharmaceutical Industries Ltd. reported Q2 2025 results, highlighting a 10 consecutive quarters of year-over-year revenue growth, with revenues of $4.2 billion, a 1% increase in local currency terms excluding Japan BV revenues [3][4][8] - The company is on track to achieve a 30% operating profit margin by 2027 as part of its Pivot to Growth Strategy, with a focus on innovative product growth and transformation programs [3][5][6] Financial Performance - Q2 2025 revenues were $4,176 million, flat in U.S. dollars, or a decrease of 1% in local currency terms compared to Q2 2024 [8] - Gross profit increased to $2,102 million, a 4% rise compared to $2,024 million in Q2 2024, with a gross profit margin of 50.3% [10] - Non-GAAP diluted EPS for Q2 2025 was $0.66, an increase of 9% year-over-year [17] Product Performance - AUSTEDO revenues reached $498 million in Q2 2025, a 19% increase in local currency compared to Q2 2024, with an increased 2025 revenue outlook of $2,000 million - $2,050 million [3][6] - AJOVY global revenues were $155 million in Q2 2025, a 31% increase in local currency compared to Q2 2024, with an increased 2025 revenue outlook of $630 million - $640 million [3][6] - UZEDY revenues accelerated to $54 million in Q2 2025, a 120% increase compared to Q2 2024, with an increased 2025 revenue outlook of $190 million - $200 million [3][6] Segment Results - The United States segment reported revenues of $2,151 million, a 2% increase compared to Q2 2024, driven by higher revenues from innovative products [27][39] - The Europe segment saw revenues of $1,298 million, a 7% increase compared to Q2 2024, mainly due to higher revenues from AJOVY and generic products [42][50] - The International Markets segment experienced a 17% decrease in revenues to $495 million, primarily due to the divestment of the business venture in Japan [54][63] Cost Management and Savings - Teva's transformation programs are expected to generate ~$700 million in net savings by 2027, with ~$70 million targeted for 2025 [3][6] - Selling and Marketing expenses in Q2 2025 were $654 million, flat compared to Q2 2024, while General and Administrative expenses increased by 8% to $305 million [12] Outlook - The company reaffirmed its 2025 revenue outlook of $16.8 - $17.2 billion and adjusted EBITDA of $4.7 - $5.0 billion [67] - Non-GAAP diluted EPS outlook for 2025 is projected to be $2.50 - $2.65, reflecting a $0.05 increase at the low-end [67]