Teva Pharmaceutical Industries (NYSE:TEVA) Update / briefing February 17, 2026 08:00 AM ET Company ParticipantsChristopher Stevo - SVP of Investor RelationsEric Hughes - CMOGlenn Santangelo - Managing DirectorJason Gerberry - Managing DirectorMatt Dellatorre - Vice PresidentRichard Francis - CEOUmair Rafat - Senior Managing DirectorConference Call ParticipantsAsh Verma - Stock AnalystDavid Amsellem - Senior Research AnalystDennis Ding - Stock AnalystLes Salewski - Stock AnalystLouise Chen - Wall Street Anal ...

Positive Data From Inflammatory Bowel Disease StudyTeva and Sanofi SA (NASDAQ:SNY) released positive results on Tuesday from the RELIEVE UCCD long-term extension study of duvakitug, an investigational human monoclonal antibody targeting TL1A.The study demonstrated durable clinical efficacy maintained over 44 weeks in patients with ulcerative colitis and Crohn’s disease.The study involved 130 patients who initially responded to duvakitug in the induction phase, and both doses of duvakitug were well tolerated ...

Core Insights - Duvakitug, an investigational human monoclonal antibody targeting TL1A, has shown durable clinical and endoscopic efficacy in patients with ulcerative colitis (UC) and Crohn's disease (CD) over a 44-week maintenance period following initial response in the induction phase [1][7] - The study results indicate that duvakitug has the potential to be a leading therapy for inflammatory bowel disease (IBD), with ongoing phase 3 studies to further evaluate its efficacy and safety [2][4] Study Details - The RELIEVE UCCD long-term extension study enrolled 130 patients who had responded to duvakitug in the induction study, with a maintenance period of 44 weeks where patients received either 450 mg or 900 mg doses every four weeks [2][12] - At week 44, 58% of patients on the 900 mg dose and 47% on the 450 mg dose achieved clinical remission in UC, while 55% on the 900 mg dose and 41% on the 450 mg dose achieved endoscopic response in CD [8] Safety and Tolerability - Both doses of duvakitug were well tolerated, with the most common adverse events being upper respiratory tract infection, nasopharyngitis, Crohn's disease, and hypertension, consistent with findings from the induction study [3][7] Industry Context - IBD is characterized by chronic inflammation of the gastrointestinal tract, with approximately 4.9 million cases globally, and the incidence is rising in several regions [5] - There is currently no cure for IBD, and treatment aims to induce and maintain remission while preventing flares [9]

Sanofi and Teva’s duvakitug phase 2b maintenance data demonstrated clinically meaningful durable efficacy in ulcerative colitis and Crohn’s disease In the RELIEVE UCCD LTE phase 2b study, duvakitug showed robust, durable efficacy for an additional 44 weeks in UC and CD patients who had responded after 14 weeks of induction Duvakitug was well tolerated and safety was consistent with the induction studyFindings reinforce the potential of duvakitug which is in ongoing phase 3 programs in UC and CD Paris and Pa ...

In the RELIEVE UCCD LTE phase 2b study, duvakitug showed robust, durable efficacy for an additional 44 weeks in UC and CD patients who had responded after 14 weeks of inductionDuvakitug was well tolerated and safety was consistent with the induction studyFindings reinforce the potential of duvakitug which is in ongoing phase 3 programs in UC and CD Teva will hold an investor call and live webcast today, Tuesday, February 17, 2026, at 8:00 a.m. ET to discuss these data. PARSIPPANY, N.J. and PARIS, Feb. 17, 2 ...

In the RELIEVE UCCD LTE phase 2b study, duvakitug showed robust, durable efficacy for an additional 44 weeks in UC and CD patients who had responded after 14 weeks of inductionDuvakitug was well tolerated and safety was consistent with the induction studyFindings reinforce the potential of duvakitug which is in ongoing phase 3 programs in UC and CD Teva will hold an investor call and live webcast today, Tuesday, February 17, 2026, at 8:00 a.m. ET to discuss these data. PARSIPPANY, N.J. and PARIS, Feb. 17, 2 ...

Teva Pharmaceutical Industries Conference Summary Company Overview - **Company**: Teva Pharmaceutical Industries (NYSE: TEVA) - **Date of Conference**: February 13, 2026 - **Key Speaker**: Dr. Eric Hughes, Chief Medical Officer Core Industry Focus - **Industry**: Pharmaceutical, specifically in immunology and drug development Key Points and Arguments Immunology R&D Efforts - Teva is focusing on validated molecular targets in its immunology R&D, including TSLP/IL-13-directed treatments [1][2][3] - The company has a strong antibody and protein engineering group, enhancing its capabilities in developing biosimilars and innovative drugs [4][5] Targeted Approaches - The company is exploring various combinations of molecular targets to increase the probability of success in drug development [5][6] - Teva is agnostic regarding the source of innovation, whether internal or through business development and collaborations [8][10] IL-15-Directed Antibody (408) - Teva is accelerating its IL-15-directed antibody program, targeting vitiligo and celiac disease with timelines set for 2031 and 2034, respectively [12][13] - The company has secured up to $500 million in R&D funding from Royalty Pharma for the vitiligo program, emphasizing the high costs associated with drug development [19][21] Clinical Development Insights - The phase IIb study for vitiligo will require a safety database of approximately 1,400 patients for FDA approval [22] - The company aims to differentiate its IL-15 treatment from existing therapies by potentially offering a quarterly dosing regimen, contrasting with daily treatments of current options [37][39] Mechanistic Rationale - The mechanism of action for IL-15 in vitiligo involves blocking signals that maintain CD8 positive T-cells, which destroy melanocytes [31][33] - In celiac disease, IL-15 is linked to the proliferation of anti-gut lining cells, and blocking it may prevent damage to the gut lining [45][47] Competitive Landscape - Teva's IL-15 antibody is considered more potent than competitors, with a lower rate of anti-drug antibodies [50] - The company is exploring additional indications for its IL-15 treatment, including atopic dermatitis and alopecia areata [51] Future Developments - Teva plans to submit an IND for the TSLP/IL-13 combination by the end of the year, indicating a proactive approach to advancing its pipeline [85] Additional Important Insights - The company acknowledges the high costs of drug development, with $500 million being a reasonable estimate for a vitiligo program [21] - Safety profiles of new treatments are a significant concern, with IL-15 showing promising tolerability compared to existing JAK inhibitors [44] This summary encapsulates the key discussions and insights from the Teva Pharmaceutical Industries conference, highlighting the company's strategic focus on immunology and its innovative approaches to drug development.

Core Insights - Teva Pharmaceutical Industries (TEVA) reported fourth-quarter 2025 adjusted earnings of 96 cents per share, significantly surpassing the Zacks Consensus Estimate of 65 cents, with a year-over-year increase of 35.2% driven by higher gross profit and tax benefits [1][6] - Revenues for the fourth quarter reached $4.71 billion, exceeding the Zacks Consensus Estimate of $4.34 billion, marking an 11% increase from the previous year on a reported basis and a 9% increase on a constant currency basis [1][6] Revenue Drivers - The fourth-quarter top line was primarily boosted by a $500 million milestone payment from Sanofi related to the development of duvakitug, alongside strong sales from branded drugs such as Austedo, Ajovy, and Uzedy [2][6] - U.S. segment sales were $2.64 billion, up 34% year over year, driven by higher revenues from Austedo and the milestone payment from Sanofi, surpassing the Zacks Consensus Estimate of $2.14 billion [7] Product Performance - Austedo recorded U.S. sales of $725 million, a 40% year-over-year increase, driven by volume growth and the launch of Austedo XR, exceeding the Zacks Consensus Estimate of $585 million [8] - Ajovy sales reached $105 million, up 68% year over year, also surpassing the Zacks Consensus Estimate of $71 million [9] - Uzedy generated sales of $55 million in the fourth quarter, up 28% year over year, primarily due to volume growth [9] International Market Performance - The Europe segment reported revenues of $1.31 billion, down 3% year over year, with a 10% decline on a constant currency basis, slightly missing the Zacks Consensus Estimate of $1.32 billion [11] - The International Markets segment recorded revenues of $528 million, down 20% year over year, missing the Zacks Consensus Estimate of $625 million, primarily due to the divestment of Teva's business venture in Japan [12] Margin and Operating Income - Adjusted gross margin was 60.3%, up 550 basis points year over year, driven by the milestone from Sanofi and higher Austedo revenues [14] - Adjusted operating income rose 31% year over year to $1.53 billion, with an adjusted operating margin of 32.5%, an increase of 490 basis points [15] Full Year Results and Guidance - For the full year 2025, revenues were $17.3 billion, a 4% year-over-year increase, exceeding the guided range of $16.8-$17.0 billion [17] - Teva expects total revenues for 2026 to be in the range of $16.4-$16.8 billion, reflecting continued strong momentum in its innovative portfolio [18] - Projected sales for Austedo in 2026 are estimated to be between $2.40-$2.55 billion, with Ajovy sales expected at approximately $750-$790 million [19]

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][30] - Net debt to EBITDA ratio improved to 2.5 times, with a target of 2 times 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][12] - Generics business remained flat, with U.S. growth at 2%, international markets at 1%, and Europe declining by 2% [16][30] Market Data and Key Metrics Changes - The U.S. generics market faced challenges, particularly with the loss of revenue from generic Revlimid, expected to impact 2026 [34][37] - The biosimilars portfolio is expanding, with 10 assets currently in the market and plans to launch 6 additional by 2027 [18][30] Company Strategy and Development Direction - The company is focused on its "Pivot to Growth" strategy, emphasizing innovative products 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 growth and margin expansion [28][41] - The company anticipates a gradual revenue increase in 2026, despite challenges in the generics segment [34][39] Other Important Information - The company received a $500 million milestone payment from Sanofi, positively impacting revenue and free cash flow [30] - Non-GAAP gross margin increased to 56.2%, with expectations for 54.5%-55.5% in 2026 [31][35] 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 remained optimistic about continued momentum [53][54] Question: Pipeline excitement versus market perception - Management noted that the rapid development of the pipeline may have surprised investors, emphasizing the quality and potential of new products [57][60] Question: Funding R&D and economic implications of 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 potency and selectivity of the product [70][71]