Teva Pharmaceutical Industries (TEVA) Barclays 28th Annual Global Healthcare Conference summary

Strategic transformation and financial performance

• Transitioned from a generics-focused to a biopharma company, with the innovative portfolio surpassing $3 billion and growing at 35% in 2025.

• Achieved significant momentum across leading brands AUSTEDO, UZEDY, and AJOVY, driving improvements in gross margin, EBITDA, and EPS.

• Organizational effectiveness and cost efficiency program met its 2025 goal, setting up for two-thirds of $700 million in savings by 2026.

• EBITDA is projected to exceed $5 billion in 2026, despite the loss of Revlimid, reflecting successful portfolio transition and cost discipline.

• Free cash flow expected to reach $3.5–$4 billion by 2030, driven by portfolio evolution and rigorous capital allocation.

Pipeline and product milestones

• Seven major milestones targeted for 2026, including data readouts and launches for duvakitug, anti-IL-15, emrusolmin, and a dual-action rescue inhaler.

• Olanzapine long-acting injectable set for Q4 2026 launch, with expectations to build a $1.5–$2 billion franchise alongside UZEDY.

• Duvakitug maintenance data positions it as a leading TL1A asset, with ambitions for 5–10 indications and peak sales potentially exceeding $2–5 billion.

• Anti-IL-15 for vitiligo expected to reach market by 2031, with additional indications and partnerships accelerating pipeline progress.

• Late-stage pipeline valued at over $13 billion in peak sales, with multiple launches planned through 2031.

Brand and generics portfolio dynamics

• AUSTEDO achieved 30% growth for three consecutive years, with the XR formulation driving higher dosing and adherence; on track to surpass $2.5 billion target ahead of schedule.

• UZEDY and AJOVY continue to deliver double-digit growth, with UZEDY expected to reach $280 million and AJOVY gaining market share despite competitive pressures.

• Generics business maintains mid-single-digit CAGR, with biosimilar launches accelerating; 10 biosimilars on market, 6 more by 2027, and a total portfolio of 28.

• Cost of goods sold expected to decline as manufacturing network evolves, supporting gross margin protection and funding for innovation.