Cautionary Note Regarding Forward-Looking Statements 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 significant ly from that expressed or implied by such forward -looking statements. Important factors that c ...

Core Insights - Teva Pharmaceutical Industries Ltd. is set to present its ongoing transformation and growth trajectory through 2030 at the 44th Annual J.P. Morgan Healthcare Conference [1] - The presentation will highlight milestones achieved in 2025, transformative initiatives, and a forward-looking outlook for 2026 and beyond [1] Financial Performance Outlook - Expected revenues for 2025 are projected to be between $16.8 billion and $17.0 billion, with a lower point of the range contributing an additional $500 million from duvakitug milestones [3] - Operating margin is anticipated to be around 26.2% to 27.1%, with a mid to high point of the range contributing approximately 80%-85% [3] - Adjusted EBITDA is expected to be between $4.8 billion and $5.0 billion, with a midpoint of the range contributing around $400 million to $430 million [3] - The diluted EPS is projected to be between $2.55 and $2.65, with the higher point of the range being emphasized [3] - Free cash flow is expected to be between $1.6 billion and $1.9 billion, with a higher point of the range contributing approximately $500 million [3] - Net leverage is projected to be around 2.5x to 2.9x, with a midpoint of the range at approximately 2.5x [3] Future Growth Strategy - Teva is accelerating its "Pivot to Growth" strategy, focusing on becoming a leading innovative biopharmaceutical company, supported by its generics business [6] - Key innovative brands such as AUSTEDO, AJOVY, and UZEDY are driving growth and reshaping the financial outlook [6] - The clinical pipeline includes assets like olanzapine LAI, DARI, duvakitug, emrusolmin, and anti-IL-15, which are expected to support long-term growth [6] - For 2026, revenues are expected to be flat to slightly down compared to 2025, with low-single digit growth anticipated for 2027 and mid-single digit CAGR by 2030 [5] - Operating profit is expected to grow by 30% in 2027, with free cash flow projected to exceed $2.7 billion [5]

Group 1: Company Overview - Teva Pharmaceutical Industries Limited (NYSE:TEVA) is recognized as one of the best drug stocks to buy currently [1] - The company develops, produces, and sells medicines across various segments including specialty, generics, and over-the-counter (OTC) products [4] Group 2: Product Development - Teva announced on September 9 that it received Fast Track designation from the U.S. FDA for emrusolmin, an investigational treatment for Multiple System Atrophy (MSA) currently in Phase 2 development [1] - Emrusolmin is part of a strategic collaboration with MODAG GmbH and is being evaluated in a Phase 2 trial to assess its efficacy and safety, targeting the alpha synuclein protein involved in MSA pathogenesis [3] - The U.S. FDA granted Orphan Drug designation to emrusolmin for MSA in 2022, highlighting the urgent need for new therapeutic options for this rare neurodegenerative disorder [2][3]

Financial Performance - Teva's Q2 2025 revenues remained flat at $4176 million compared to Q2 2024, but excluding Japan BV, revenues increased by 2%[87] - Non-GAAP EPS increased by 10% to $066 in Q2 2025 compared to $061 in Q2 2024[87] - Free cash flow increased significantly by 47% to $476 million in Q2 2025 from $324 million in Q2 2024[87] - The company is on track to achieve a 30% operating profit margin (OPM) by 2027 through its transformation program[85, 91] Product Performance - AUSTEDO U S revenues grew by 22% year-over-year to $495 million in Q2 2025[26] - UZEDY revenues increased significantly by 120% year-over-year to $54 million in Q2 2025[22, 31] - AJOVY global revenues increased by 31% year-over-year to $155 million in Q2 2025[22, 34] - Global generics revenues declined by 2%[22], and in local currency, global generics revenues decreased 5% vs Q2'24 including Japan BV[23] Pipeline and Strategy - The company expects to submit olanzapine LAI for U S NDA in Q4 2025[36, 55, 62] - Teva is targeting peak sales of $15-2 billion for the LAI franchise (UZEDY and olanzapine LAI)[102] - The company anticipates the start of Phase 3 trials for duvakitug in ulcerative colitis (UC) and Crohn's disease (CD) by Sanofi in Q4 2025[68] - Teva transformation in '25 well on track to deliver annualized ~20% of total $700 million savings[105]

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]