TEVA(US:TEVA)2026-01-28 14:02Financial 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]