Teva Says Pivot to Growth Gains Steam as Branded Drugs, Biosimilars Outperform

Teva’s “Pivot to Growth” is gaining momentum, with branded medicines, generics and biosimilars returning to growth. The company also reduced debt, secured investment-grade ratings from all three major agencies and completed an oversubscribed refinancing. Key branded products are outperforming expectations: AUSTEDO is on track to exceed its $2.5 billion sales target early and eventually surpass $3 billion, while AJOVY is approaching its $1 billion goal faster than anticipated. UZEDY is leading its long-acting injectable risperidone market, with UZEDY and planned olanzapine launches projected to generate $1.5 billion-$2 billion combined. Biosimilars and the pipeline are central to future growth. Teva has 11 biosimilars on the market, expects roughly nine more by 2030 and anticipates exceeding its $800 million 2027 biosimilar-revenue target early; potential future launches include ecopipam and the partnered TL1A drug duvakitug.

Teva Pharmaceutical Industries NYSE: TEVA CEO Richard Francis said the company has progressed from the initial phase of its “Pivot to Growth” plan into its next stage, citing momentum in branded medicines, innovation, generics and biosimilars, as well as improved financial flexibility. Speaking at the Morgan Stanley Global Healthcare Conference, Francis said the strategy, launched in 2023, is centered on delivering growth from existing products, increasing innovation, building a generics powerhouse and focusing the business and capital allocation. He said Teva’s goal of evolving beyond a pure-play generics manufacturer into a biopharmaceutical company has become increasingly credible over the past three-and-a-half years.

Francis also highlighted the company’s debt reduction and recent return to investment-grade ratings from all three major rating agencies. Teva completed a refinancing last week that was “hugely oversubscribed,” he said, adding that the company achieved investment-grade status more than a year ahead of its stated target. Teva also converted ADS shares into ordinary shares, which Francis said would expand investor access to the company.

Addressing potential U.S. tariffs on imported generic drugs, Francis said Teva’s domestic manufacturing presence could provide an advantage, though he cautioned that the policy environment remains dynamic. He said Teva has the largest generic manufacturing footprint in the U.S. and has worked with the administration on matters involving the Department of Health and Human Services, the Inflation Reduction Act and a potential agreement referenced at the White House.

Francis said Teva generates close to $40 billion in annual savings for the U.S. and believes the company has a meaningful voice in policy discussions. He added that the company’s growing biosimilars portfolio could help it navigate a more challenging market environment.

Francis reiterated that Teva’s AUSTEDO franchise is expected to generate more than $3 billion in sales over time. He did not provide 2027 revenue guidance but said the company appears positioned to reach its previously stated $2.5 billion target a year early based on the midpoint of its current guidance. He attributed the opportunity to a large untreated population in tardive dyskinesia and to Teva’s improving ability to identify patients, initiate treatment, optimize dosing and support adherence. Francis acknowledged that the market is competitive, including competition from Neurocrine Biosciences.