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.
Tariffs and U.S. Manufacturing
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.
Branded Medicines Growth
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’ INGREZZA, but said Teva remains focused on execution and disciplined resource allocation.
AJOVY has also exceeded Teva’s expectations, Francis said. The migraine treatment has been growing faster than its injectable CGRP market and gaining share, according to the CEO. Teva may need to issue new guidance for AJOVY as it approaches its $1 billion target more quickly than anticipated, he said.
For UZEDY, Teva’s long-acting risperidone treatment for schizophrenia, Francis said the company has benefited from a product profile that enables subcutaneous administration and can reach therapeutic doses within eight to 24 hours without concomitant adjunctive therapy. He said UZEDY is now the leading long-acting injectable risperidone product and that Teva has doubled that market since entering it.
Teva expects olanzapine, another long-acting injectable candidate, to have a clearer path for launches outside the U.S. than UZEDY, subject to pricing considerations. Francis said Teva has not included international UZEDY revenue in its forecasts. Together, UZEDY and olanzapine are projected by the company to generate $1.5 billion to $2 billion cumulatively.
Francis said the pace of olanzapine uptake will depend in part on state-by-state Medicaid access. Teva expects Medicaid coverage to reach approximately 85% of the market after 12 months, while the company does not expect to pursue Medicare access initially if doing so would require discounts that it views as inconsistent with the product’s value.
Generics and Biosimilars
Francis said Teva’s generics business has shifted from several years of decline to growth over the past three years, supported by launches, manufacturing improvements, supply reliability and changes to its go-to-market approach. The next major change, he said, is an expanding biosimilars portfolio.
Teva currently has 11 biosimilars on the market and expects to add roughly nine more by the end of the decade, with 26 to 29 products in its broader portfolio, Francis said. He highlighted performance from products including Semglee and EPYSQLI and said Teva expects to exceed its target of $800 million in biosimilar revenue by the end of 2027 a year early.
He said Europe represents an additional opportunity as Teva expands biosimilar launches across different market structures, while the company sees opportunity in the complexity of the U.S. market.
Pipeline and Business Development
Eric Hughes, Teva’s head of research and development, said the company’s TL1A candidate duvakitug has produced competitive Phase II and maintenance data in ulcerative colitis and Crohn’s disease. Teva and partner Sanofi are advancing Phase III programs, with Hughes saying Teva believes its ulcerative colitis timeline falls within an 18-month window of competitors.
Hughes also discussed TL1A development in hidradenitis suppurativa, citing the disease’s inflammatory and fibrotic components. He said Teva sees potential for the mechanism because it affects multiple cytokine pathways.
For ecopipam, Teva submitted a new drug application in June and has received priority review, Hughes said. The company expects a potential launch in the first half of 2027. Hughes described ecopipam as a first-in-class D1 antagonist for Tourette syndrome and said its studies showed efficacy alongside a safety profile that did not exhibit the side effects associated with D2 antagonists.
Francis said Teva does not have an urgent need for acquisitions but will consider selective business-development opportunities, particularly in central nervous system therapies, immunology, respiratory diseases and rare diseases. He said the company has five innovative launches planned over five years and expects additional opportunities from multiple indications for assets including duvakitug and its IL-15 program.
About Teva Pharmaceutical Industries (NYSE:TEVA)
Teva Pharmaceutical Industries Ltd. is a global pharmaceutical company headquartered in Tel Aviv, Israel. The company develops, manufactures and markets generic medicines, innovative specialty medicines, biosimilars, over-the-counter products and active pharmaceutical ingredients. Its portfolio serves a broad range of therapeutic areas, including central nervous system disorders, respiratory conditions, migraine, oncology and movement disorders.
Teva’s specialty medicines include treatments for conditions such as multiple sclerosis, migraine and tardive dyskinesia, while its generic medicines business supplies products across numerous therapeutic categories and dosage forms.
