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]