Teva Pharmaceutical Industries (TEVA) investor relations material

Deal rationale and strategic fit

• Acquisition adds a first-in-class, NDA-ready therapy for pediatric Tourette syndrome, expanding the neuroscience pipeline and supporting both near- and long-term growth strategies.

• Aligns with a growth strategy focused on rare neurological and CNS assets, leveraging existing commercial infrastructure and accelerating the shift toward innovative medicines and revenue.

• Ecopipam, Emalex's lead asset, addresses significant unmet need in pediatric Tourette syndrome with a differentiated D1 receptor mechanism and favorable tolerability.

• The deal supports transformation into a leading, high-margin, innovative biopharma company.

Financial terms and conditions

• Upfront cash consideration of $700 million, with up to $200 million in additional commercial milestone payments and net sales-based royalties, subject to regulatory approval.

• Transaction funded with cash on hand and expected to close by late Q2 or Q3 2026, pending regulatory approvals and customary conditions.

• Acquisition treated as an asset deal under U.S. GAAP; $700 million upfront flows through R&D expenses.

• Lowers 2026 non-GAAP operating profit by ~$775M, but expected to be accretive to non-GAAP EPS and margins in 2028.

Synergies and expected cost savings

• Significant synergies expected with existing CNS franchise, leveraging commercial infrastructure, patient services, managed markets, and sales force.

• Only a small pediatric sales force addition required, with deep expertise in movement disorders and neurology leveraged.

• Additional efficiency measures planned to absorb higher operating expenses in 2027 and mitigate near-term margin dilution.

• Acquisition expected to be capital-efficient and expand the late-stage innovative pipeline.