Growth Strategy - Teva aims to achieve a ~30% innovative franchise CAGR, targeting >$2.3 billion, and return generics powerhouse to +5% p a growth[22] - The company projects AUSTEDO sales to exceed $2.5 billion by 2027[52], and peak sales of >$3 billion[47] - Teva anticipates peak sales of $1.5-2 billion from its LAI (Long Acting Injectables) franchise, including UZEDY and olanzapine LAI[52] Financial Performance & Targets - The company is targeting a mid-single digit percentage revenue growth (CAGR '22 – '27)[44] and an operating income margin of 30%[44] - Teva aims to reduce net leverage to 20x[22,44] and increase free cash flow to >$27 billion by 2027[22,235] - The company plans to achieve ~$700 million in net savings by 2027 through transformation programs[220,225] Pipeline & Innovation - Olanzapine LAI is projected to have peak sales potential of >$15 – 20 billion, with targeted submission in H2 2025[38] - Duvakitug has a peak sales potential of ~$2-5 billion, with a targeted submission around 2029+[38] - Emrusolmin is projected to have peak sales potential of >$2 billion, with a targeted submission around 2031[38]

Core Viewpoint - Teva Pharmaceuticals has received a corporate credit rating upgrade from Fitch Ratings Agency to BB+ with a stable outlook, reflecting the company's improved financial discipline and growth strategy [1][2][3] Financial Performance - Fitch's report highlights Teva's progress in reducing debt and enhancing financial flexibility, which is expected to support continuous revenue growth from products like AUSTEDO and AJOVY, as well as from its biosimilar pipeline [2] - The company's focus on optimizing external spending and resource allocation is anticipated to lead to higher operating margins [2] Strategic Initiatives - Teva's "Pivot to Growth" strategy is recognized as a key factor in the recent credit rating upgrades, indicating confidence in the company's future performance [3] - The company has been actively modernizing its organization to better address market demands and improve operational efficiency [2][3] Company Overview - Teva Pharmaceutical Industries Ltd. operates globally, focusing on both innovative and generic medicines, with a commitment to advancing health for over 120 years [4] - The company employs approximately 37,000 individuals across 57 markets, emphasizing its extensive capabilities in the biopharmaceutical sector [4]

Core Viewpoint - Teva Pharmaceuticals has received a credit rating upgrade from Moody's, reflecting the company's strong performance and strategic focus on growth and debt reduction [1][2][3]. Group 1: Credit Rating Upgrade - Moody's has raised Teva's corporate credit rating to Ba1 with a stable outlook, up from Ba2 with a positive outlook [1]. - The upgrade is attributed to Teva's significant global scale, growth in branded franchises, stabilization of the generics business, and focus on debt reduction [2]. Group 2: Company Strategy and Performance - The upgrade is seen as a validation of Teva's "Pivot to Growth" strategy, which aims to enhance the company's financial health and investor access [3]. - Teva has a global workforce of 37,000 employees operating in 57 markets, focusing on both innovative medicines and generics [3].

Core Viewpoint - Teva Pharmaceutical Industries Ltd. has published its 2024 Healthy Future Report, highlighting its achievements in sustainability and access to medicines, which are integral to its long-term growth strategy [1][5]. Healthy People - Teva launched two new access to medicines programs, bringing the total to nine, exceeding its target of eight by 2025. The company donated approximately 18 million doses of medicine valued at $23 million and provided 2.2 million doses at low cost, benefiting 187,000 patients. Additionally, five programs focused on strengthening health systems and capacity building, aiding around 56,000 individuals [2]. Healthy Planet - Teva achieved a 29% reduction in absolute scope 1 and 2 greenhouse gas emissions from 2019 levels, surpassing its 25% target by 2025 ahead of schedule. Furthermore, 73% of applicable Teva sites met safe discharge levels for antibiotics, reducing environmental pollution. A pilot program in Germany educated over 65,000 healthcare professionals, resulting in approximately 389,000 patient interactions regarding appropriate antibiotic use [3][8]. Healthy Business - Teva emphasized integrity in operations, with over 99% of employees retrained on compliance and ethics, meeting its annual target. Additionally, 41% of significant suppliers were evaluated for sustainability performance, and all high-risk third-party partners underwent evaluation through Teva's Third-Party Due Diligence tool, promoting responsible sourcing practices [4][8]. Recognition and Impact - Teva received improved sustainability scores from organizations such as Sustainalytics, MSCI, and EcoVadis, along with awards for its programs and progress. The company's generic medicines contributed to $39.7 billion in savings for healthcare systems across 22 countries [5][8].

Financial Data and Key Metrics Changes - Revenue increased by 5% to GBP 3.9 billion, adjusted EBITDA rose by 3%, and non-GAAP EPS increased by 8% to $0.52 [6][26][30] - Non-GAAP gross margin improved by 140 basis points year over year to 52.8% [27] - Net debt to EBITDA ratio remained just above 3 times [30] Business Line Data and Key Metrics Changes - Innovative brands generated $589 million in sales, a 45% increase year over year, driven by AUSTEDO (up 39%), AJOVY (up 26%), and UZEDI (doubled to $39 million) [8][12][13] - Generics business grew by 3% year on year, with 5% growth in the U.S. [15][16] - Biosimilars launched two products in the U.S. and have five more planned for 2025 to 2027 [17][18] Market Data and Key Metrics Changes - U.S. business for AUSTEDO increased by 40%, with over 60% of new patients on AUSTEDO XR [9][10] - UZEDI gained over 60% market share in the long-acting risperidone market [12] - AJOVY confirmed guidance for $600 million in sales, with strong growth in Europe and international markets [14] Company Strategy and Development Direction - The company is focused on transforming from a generics powerhouse to a leading biopharmaceutical company, emphasizing innovative products and capital allocation [21][34] - The goal is to achieve a 30% operating margin by 2027, supported by a shift towards high-margin innovative products [23][34] - The company plans to modernize operations, reduce costs, and optimize procurement to drive growth [21][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 targets, driven by innovative product growth and effective cost management [19][20] - The company is navigating macroeconomic challenges, including tariffs, without significant impact on business [32][33] - Management highlighted the importance of maintaining a strong U.S. manufacturing footprint to mitigate risks [32][33] Other Important Information - The company has absorbed the impact of new U.S. tariffs in its updated guidance for 2025 [25][32] - The divestiture of the Japanese generics business has been completed, affecting revenue guidance for 2025 [37][38] Q&A Session Summary Question: Transition from generics to biopharma - Management clarified that the generics business remains a crucial part of the strategy, supporting innovation and cost discipline [60][61] Question: Future savings potential - Management indicated that the $700 million in savings is part of an ongoing journey, with continuous efforts to drive efficiencies [61] Question: Impact of Revlimid on EBITDA - Management confirmed that EBITDA will increase in absolute dollars in 2026, despite headwinds from generic Revlimid [76][78] Question: Tariff impact on pricing - Management stated that they have mitigated tariff impacts and have a strong U.S. manufacturing presence to support pricing strategies [70][72] Question: Resource allocation for investments - Management assured that cost reductions will not hinder investments in the innovative portfolio, emphasizing capital allocation efficiency [87][88]

Financial Performance & Outlook - Teva reported a 5% revenue increase in Q1 2025 compared to Q1 2024 [18] - Non-GAAP EPS increased by 8% in Q1 2025 compared to Q1 2024 [18] - Free cash flow saw a significant increase of 238% in Q1 2025 compared to Q1 2024 [18] - The company is on track to achieve a 30% operating profit margin (OPM) by 2027 [44, 93] - Teva is targeting ~$700 million in net savings by 2027 through modernization efforts [39, 95] Key Products & Growth Drivers - AUSTEDO U S revenue grew by 40% year-over-year in Q1 2025, reaching $396 million [24] - Global AUSTEDO revenue reached $411 million in Q1 2025, a 39% year-over-year increase [21, 24] - UZEDY revenues increased by 156% year-over-year in Q1 2025, reaching $39 million [21, 30] - AJOVY global revenues grew by 26% year-over-year in Q1 2025, reaching $139 million [21, 32, 33] Generics & Biosimilars - Global generics experienced a 3% growth in Q1 2025 [21, 34]

Company Overview - Teva Pharmaceutical Industries Ltd. is a global pharmaceutical leader with over 120 years of commitment to improving health, operating in 57 markets with a workforce of 37,000 employees [2] Upcoming Events - Richard Francis, Teva's President and CEO, will present at two investor conferences in March 2025: Barclays 27th Annual Global Healthcare Conference on March 11 at 8:00 am ET and Leerink Partners Global Healthcare Conference on March 12 at 8:40 am ET [1][4] Investor Relations - A live webcast of the presentations will be available on Teva's Investor Relations website, with an archived version accessible within 24 hours after the live discussion [1]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $4.2 billion, a decrease of 5% compared to Q4 2023. Excluding a one-time payment from Sanofi, revenue increased by 7% [41][42] - Adjusted EBITDA for the year was $4.8 billion, up 9%, and non-GAAP EPS was $2.49, up 10% [9][39] - Free cash flow increased by 10% to $2.1 billion, and net debt to EBITDA ratio improved to approximately 3 times [9][50] Business Line Data and Key Metrics Changes - The Innovative business grew significantly, with AUSTEDO up 36% to nearly $1.7 billion, AJOVY up 18% to over $500 million, and Uceti reaching $117 million, exceeding guidance [10][12][14] - The Generics business saw an 11% increase, totaling approximately $9.5 billion, while the API business grew by 3% [10][20] Market Data and Key Metrics Changes - The U.S. market for AUSTEDO showed a 34% growth, contributing significantly to the overall performance [11] - International markets delivered a 15% growth, while Europe experienced mid-single-digit growth [22] Company Strategy and Development Direction - The company is focused on its "Pivot to Growth" strategy, which includes four pillars: delivering on growth engines, stepping up innovation, creating a sustainable generics powerhouse, and focusing the business [5][4] - Plans for 2025 include launching seven biosimilars in the U.S. and four in Europe, alongside a commitment to improve operational efficiency [19][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 5% CAGR by 2027, citing strong growth in innovative products and a return to growth in the generics business [8][51] - The company is mindful of industry dynamics, including the Inflation Reduction Act's impact on the U.S. market, and is adjusting its financial guidance accordingly [54][56] Other Important Information - The company received a one-time payment of $500 million from Sanofi in Q4 2023, which positively impacted revenue and adjusted EBITDA [40] - Credit ratings agencies have upgraded the company's ratings, reflecting improved growth prospects and a strengthened balance sheet [51] Q&A Session Summary Question: What is the EBITDA trajectory going forward? - Management indicated that the partnership with Sanofi involves a 50-50 share of operational expenses, which will support the Duvequito program. They aim to grow EBITDA while investing in key areas [64][66] Question: Can you clarify the guidance for AUSTEDO and the impact of the IRA? - Management acknowledged that the IRA redesign affects AUSTEDO and noted that while they expect strong prescription growth, they must navigate the immediate impacts of the redesign [80][82] Question: How will the company address the loss of Revlimid sales? - Management plans to offset Revlimid's decline with new product launches, including 16 complex generics and several biosimilars, while maintaining growth in the innovative business [94][96] Question: Any updates on the lawsuit against CMS? - Management stated they cannot provide specific details due to ongoing litigation but will share updates as they become available [97]