TEVA(US:TEVA)2026-01-28 14:00Financial 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]