Financial Data and Key Metrics Changes - Sales for Q4 2025 reached $947 million, a 15% increase year-over-year, with organic growth of 11% and contributions from the I&C Solutions acquisition [4][5] - Operating income increased by 14%, with an operating margin of 19.7% [5][6] - Diluted earnings per share grew by 16% year-over-year, driven primarily by higher A&D sales [5][6] - Free cash flow was strong at $315 million, up 13%, reflecting a 224% conversion rate [6] - For the full year 2025, diluted earnings per share increased by 21%, and adjusted free cash flow reached a record $554 million [7][8] Business Line Data and Key Metrics Changes - Aerospace & Industrial segment sales increased by 5%, with strong OEM sales growth in commercial aerospace [12][13] - Defense Electronics segment saw a 17% sales growth, driven by increased demand for tactical communications equipment and embedded computing revenues [14][15] - Naval & Power segment sales increased by 21%, primarily due to strong revenue growth in naval defense and contributions from the I&C Solutions acquisition [15][16] Market Data and Key Metrics Changes - A&D markets experienced a 16% growth, with commercial aerospace sales increasing by over 20% [5][9] - The overall order book reached a record of $4.1 billion, up 10% year-over-year, with a book-to-bill ratio of nearly 1.2 times [8][10] - Commercial nuclear market showed tremendous growth, driven by strong demand for aftermarket equipment and advancements in SMR designs [9][21] Company Strategy and Development Direction - The company continues to execute its "Pivot to Growth" strategy, focusing on operational and commercial excellence to drive sales and profitability [4][10] - Investments in research and development are being accelerated to support future organic growth, with a commitment to grow R&D faster than sales over time [7][10] - The company is well-positioned to benefit from increased global defense spending and the U.S. government's focus on nuclear energy dominance [32][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong performance in 2026, projecting organic sales growth of 6%-8% [10][11] - The outlook for A&D markets includes anticipated growth driven by U.S. defense budget priorities and increased demand for secure embedded computing solutions [18][20] - Management acknowledged potential headwinds in ground defense due to delays in orders but remains optimistic about future opportunities [8][19] Other Important Information - The company executed a record $465 million in share repurchases in 2025 and increased its annual dividend for the ninth consecutive year [10] - Capital expenditures are expected to increase by more than 25% year-over-year, reflecting ongoing investments to support growth [29][30] Q&A Session Questions and Answers Question: Exposure to missile programs and growth opportunities - The company has minor exposure to missile programs, primarily in telemetry and flight test instrumentation, but is well-positioned in related areas such as the Iron Dome [43][44] Question: Clarification on expected AP1000 orders - Orders could come from either European customers or the U.S., with Westinghouse as the primary customer; specifics on order size are not available at this time [46][47] Question: Free cash flow guidance and working capital dynamics - The company has improved working capital management, targeting a working capital percentage of sales of approximately 18% for 2026, which would be a record [55][57] Question: C-17 order timing and defense electronics bookings - The C-17 order is a Q1 order, and delayed bookings in defense electronics were noted, impacting the book-to-bill ratio [60] Question: Operational and commercial excellence initiatives - The Operational Growth Platform has contributed approximately $12 million to the P&L in 2025, with ongoing initiatives expected to continue driving margin expansion [68][72]

Financial Performance - Teva Pharmaceutical Industries Ltd. reported total revenue of $4.71 billion for Q4 2025, exceeding analysts' expectations of $4.37 billion, with an 11% year-over-year increase in U.S. dollars or 9% in local currency [1] - The company achieved adjusted earnings of 96 cents per share, surpassing the consensus estimate of 68 cents and up from 71 cents reported a year ago [4] Revenue Drivers - The revenue increase was primarily driven by development milestone payments related to Phase 3 studies for duvakitug and higher revenues from key innovative products, partially offset by lower proceeds from certain product rights and reduced revenues from the International Markets segment due to a divestment in Japan [2] - Key brands collectively generated approximately $1 billion in revenues for the first time in Q4 2025, with Austedo sales increasing 34% to $2.26 billion, Ajovy sales reaching $673 million (+30% LC YoY), and Uzedy revenues at $191 million, up 63% [3][4] Future Outlook - For fiscal year 2026, Teva expects adjusted earnings of $2.57-$2.77 per share, compared to the Street estimate of $2.73 [5] - The company anticipates total sales between $16.4 billion and $16.8 billion, including specific revenue projections for Austedo, Ajovy, and Uzedy [6] - Teva's pipeline for 2026 includes multiple late-stage readouts across immunology and neurology, with potential value exceeding $10 billion [7]

Financial Data and Key Metrics Changes - Revenues increased by 5% to $1.7 billion, EBITDA grew by 12% to $5.3 billion, EPS rose by 19% to $2.93, and free cash flow was up 16% to $2.4 billion [7][28] - Net debt to EBITDA ratio improved to 2.5x, with a target of 2x by 2027 [8][28] Business Line Data and Key Metrics Changes - Innovative portfolio showed strong growth: AUSTEDO grew by 34% to $2.26 billion, UZEDY increased by 63% to $191 million, and AJOVY rose by 30% to $673 million [9][10][14] - Generics business remained flat, with U.S. growth at 2%, international markets at 1%, and Europe declining by 2% [16][17] Market Data and Key Metrics Changes - The U.S. generics market faced challenges, particularly with the loss of generic Revlimid revenue, impacting overall growth [34] - The biosimilars portfolio is expected to grow by $400 million by 2027, with 10 assets currently in the market and six additional launches planned [18] Company Strategy and Development Direction - The company is focused on its "Pivot to Growth" strategy, emphasizing innovation and a shift from generics to biopharma [4][28] - A target of $700 million in net savings by 2027 is set, with $70 million achieved in 2025 [29][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term financial targets for 2030, with a focus on innovative products driving growth [28][41] - The company anticipates a gradual revenue increase in 2026, despite challenges from generic Revlimid [34][39] Other Important Information - The company is on track to achieve a non-GAAP operating margin target of 30% by 2027 [29][33] - Significant milestones in the pipeline are expected in 2026, including data releases for Duvakitug and Olanzapine LAI [43][44] Q&A Session Summary Question: Insights on AUSTEDO and UZEDY pricing dynamics - Management highlighted strong TRx growth for AUSTEDO and maintained a disciplined approach to pricing, expecting continued growth despite competitive pressures [50][51] - For UZEDY, management acknowledged the mix of Medicaid and Medicare affecting profitability but remains optimistic about continued momentum [53] Question: Disconnect between pipeline excitement and market perception - Management noted that the rapid development of the pipeline may have surprised investors, emphasizing the quality and potential of new products [57][59] Question: Funding R&D and balancing partnerships - Management stated that partnerships do not significantly impact economics, as new product launches enhance gross margins and EBITDA [65][66] Question: Expectations for TL1A maintenance data - Management expressed optimism about the upcoming maintenance data, citing the product's potency and selectivity as key advantages [70]

Financial Data and Key Metrics Changes - Revenues increased by 5% to $1.7 billion, EBITDA grew by 12% to $5.3 billion, EPS rose by 19% to $2.93, and free cash flow was up 16% to $2.4 billion [5][6][26] - Net debt to EBITDA ratio improved to 2.5 times, with a target of 2 times by 2027 [6][26] Business Line Data and Key Metrics Changes - Innovative portfolio showed strong growth: AUSTEDO grew by 34% to $2.26 billion, UZEDY increased by 63% to $191 million, and AJOVY rose by 30% to $673 million [7][8][12] - Generics business remained flat, with U.S. growth at 2%, international markets at 1%, and Europe declining by 2% [15] Market Data and Key Metrics Changes - The U.S. generics market faced challenges, particularly with the loss of generic Revlimid revenue, impacting overall revenue guidance for 2026 [33] - The innovative products are expected to drive growth, with Otezla, AJOVY, and UZEDY showing strong momentum [28][33] Company Strategy and Development Direction - The company is focused on its "Pivot to Growth" strategy, aiming for $700 million in net savings by 2027 and a 30% non-GAAP operating margin [4][26][31] - The pipeline includes multiple products with significant market potential, with a focus on addressing unmet medical needs [18][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term financial targets for 2030, with a focus on innovative growth and transformation programs [26][40] - The company anticipates continued strong performance in its innovative portfolio, despite challenges in the generics market [33][34] Other Important Information - The company has made significant progress in its biosimilars portfolio, with plans to launch six additional assets by 2027 [15][16] - The innovative pipeline is expected to generate over $10 billion in peak sales potential [14] Q&A Session Summary Question: Insights on AUSTEDO and UZEDY pricing dynamics - Management highlighted strong TRX growth and maintained a disciplined approach to pricing, expecting continued growth despite competitive pressures [49][50][52] Question: Disconnect between pipeline excitement and market perception - Management noted that the rapid development of the innovative pipeline may have surprised investors, emphasizing the quality and potential of upcoming products [56][59] Question: Funding R&D and balancing partnerships - Management stated that partnerships do not significantly impact economics, as the innovative products are expected to enhance gross margins and EBITDA [65][66] Question: Expectations for TL1A maintenance data - Management expressed optimism about the upcoming maintenance data, citing the product's potency and selectivity as key factors for positive outcomes [70]

Teva Pharmaceutical Industries Ltd. This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management's current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. Important factors that could cause or contrib ...

Core Viewpoint - Teva Pharmaceutical Industries Ltd. will present at the 44th Annual J.P. Morgan Healthcare Conference on January 13, 2026, at 8:15 A.M. Pacific Time [1] Company Overview - Teva is transforming into a leading innovative biopharmaceutical company, supported by a strong generics business, with over 120 years of commitment to improving health [3] - The company focuses on innovation in neuroscience and immunology, as well as providing complex generic medicines, biosimilars, and pharmacy brands globally [3] - Teva aims to address patients' needs both now and in the future, emphasizing their dedication to better health [3]

Core Viewpoint - Teva Pharmaceutical Industries Ltd. has received upgrades in its credit ratings from S&P Global Ratings and Moody's, indicating significant progress towards achieving investment-grade status [1][7]. Financial Performance - S&P upgraded Teva's long-term issuer credit rating to 'BB+' from 'BB', with a stable outlook, while Moody's affirmed a B1a rating and revised the outlook to positive from stable [1][7]. - Teva's adjusted leverage declined to 4.4x as of September 30, 2025, with expectations to fall below 4.25x in the coming quarters, meeting the threshold for a higher rating [2]. - Moody's noted expectations for leverage to decline toward 3.5x within 12–18 months, supporting the positive outlook [3]. Business Strategy - Teva's financial discipline and strong business performance have been highlighted, with a return to revenue growth after five years of declines, driven by robust performance in branded medicines and stabilization in generics [2]. - The company is focusing on its "Pivot to Growth" strategy, emphasizing cash flow management and capital allocation to support deleveraging and sustainable growth [4]. Product Development - Moody's cited strong momentum in Teva's branded franchises and upcoming product launches across both branded and biosimilar portfolios, which are expected to offset challenges in the generics segment [3].

Core Viewpoint - Teva Pharmaceutical Industries Ltd. has received upgrades in its credit ratings from S&P Global Ratings and Moody's, indicating significant progress towards achieving investment-grade status [1][7]. Group 1: Credit Rating Upgrades - S&P upgraded Teva's long-term issuer credit rating to 'BB+' from 'BB' with a stable outlook [1]. - Moody's affirmed Teva's B1a rating and revised the outlook to positive from stable [3][7]. Group 2: Financial Performance and Strategy - Teva's adjusted leverage declined to 4.4x as of September 30, 2025, with expectations to fall below 4.25x in the coming quarters, which meets the threshold for a higher rating [2]. - The company has returned to revenue growth after five years of declines, driven by strong performance in branded medicines and stabilization in generics [2]. - Moody's highlighted Teva's strong momentum in branded franchises and upcoming product launches, which are expected to offset challenges in the generics segment [3]. Group 3: Management Commentary - Teva's Chief Financial Officer emphasized that the upgrades reflect the company's strategic vision and disciplined execution, particularly through its Pivot to Growth strategy and robust cash flow management [4].

Financial Data and Key Metrics Changes - The company has transitioned from a leading generics company to a biopharma company, showing significant progress in financials and business setup over the past three years [2] - The gross margin is expected to grow from approximately 48% in Q1 2023 to around 54% by the end of the year, with projections of 57%-58% by 2027 [10][11] - The innovative portfolio grew by 33% in Q3, contributing to overall financial improvements [11] Business Line Data and Key Metrics Changes - Austedo, a key product, is projected to exceed $2 billion in sales this year, with peak sales expected to surpass $3 billion [2][17] - The generics business has stabilized and grown over the last three years, despite the loss of over $1 billion in sales from generic Revlimid next year [4][8] - The company is focusing on high-margin innovative products like Austedo, Uzedy, and Ajovy to drive EBITDA growth [8][9] Market Data and Key Metrics Changes - The company anticipates a significant opportunity in the untreated market for Austedo, with 85% of patients currently untreated [23] - The competitive landscape for Uzedy is described as congested, yet the product has shown strong performance due to its unique profile [39][40] Company Strategy and Development Direction - The company is committed to its "Pivot to Growth" strategy, focusing on innovative products and improving operational efficiency [2][4] - Future product launches, including Olanzapine and Duvakitug, are expected to drive significant revenue growth and enhance the product portfolio [35][46] - The company aims to maintain price discipline while ensuring access to its products, balancing value and market penetration [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EBITDA growth despite the loss of significant sales from generics, emphasizing the importance of innovative product launches [8][9] - The company is optimistic about the impact of the IRA on its products, particularly Austedo, and is focused on patient engagement and adherence programs [17][24] - Management highlighted the importance of regulatory changes in the biosimilars market as a potential tailwind for future growth [56][61] Other Important Information - The partnership with Sanofi for Duvakitug allows the company to share development costs and profits, enhancing its financial outlook [49][50] - The company is focusing on capital allocation to ensure efficient investment in its innovative pipeline while reducing investment in generics [66][67] Q&A Session Summary Question: How should we think about 2026 in terms of pushes and pulls? - Management indicated that losing over $1 billion in sales from generics will impact the top line, but they are committed to growing EBITDA through innovative products and cost-saving programs [7][9] Question: What are the underlying drivers for the $2.5 billion guidance in 2027? - The company highlighted the significant untreated market for Austedo and the importance of patient education and adherence programs to drive growth [23][24] Question: How does the company view the competitive landscape for Austedo? - Management emphasized a disciplined approach to maintaining value while ensuring access, focusing on the quality of the product and physician engagement [21][42] Question: What is the potential impact of the label expansion into bipolar for Uzedy? - While the label expansion may not significantly impact peak sales, it enhances the brand's overall perception and could contribute to growth [44] Question: What are the expectations for the Duvakitug product? - Management expressed excitement about Duvakitug's potential, projecting it could be a $3-$5 billion product based on its competitive advantages [47]

Core Insights - Teva Pharmaceuticals has received marketing authorizations from the European Commission for two denosumab biosimilar candidates, PONLIMSI and DEGEVMA, following a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) earlier this year [1][9]. Group 1: Product Approvals - The approvals of PONLIMSI and DEGEVMA represent a significant milestone in Teva's biosimilars portfolio, enhancing patient access to essential biologic therapies across Europe [2][9]. - Teva plans to launch both products in key European markets in the coming months, aligning with its Pivot to Growth strategy [2][9]. Group 2: Product Details - PONLIMSI is indicated for the treatment of osteoporosis in postmenopausal women and men at increased risk of fractures, as well as for bone loss associated with hormone ablation in men with prostate cancer [4][6]. - DEGEVMA is indicated for the prevention of bone complications in adults with advanced cancer involving bone and for the treatment of adults and skeletally mature adolescents with giant cell tumor of bone [7][10]. Group 3: Mechanism of Action - Both PONLIMSI and DEGEVMA contain denosumab, a human monoclonal IgG2 antibody that targets the protein RANKL, crucial for the formation and survival of osteoclasts, thereby reducing bone resorption [5][8]. - PONLIMSI will be available as a 60mg/1mL solution for injection in a pre-filled syringe, while DEGEVMA will be available as a 120mg/1.7mL solution for injection in a vial [5][8]. Group 4: Company Commitment - Teva's leadership emphasizes the importance of these approvals in increasing patient access to biosimilar therapies for serious bone conditions, reflecting the company's commitment to improving healthcare options in Europe [3][9]. - The company aims to provide additional treatment options for healthcare systems, particularly in regions where access to biosimilars is limited [3].