Teva gives aggressive guidance for innovative drugs

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) held today’s “Innovation and Strategy Day” to discuss the future of its (non-generic) biopharmaceutical activities. The company is looking at revenue from three major drugs to treat involuntary movement. Migraine Prevention Treatment Ajovy; Long-acting Schizophrenia Treatment Ujedi had reached at least $5 billion by 2030. This is compared to $2 billion for a total of three products in 2024.

The company has confirmed its 2027 guidance. Thanks to existing innovative products and lined products to enter the market, an operating profit margin of 30% is expected compared to 13.3% in the first quarter of 2025. Free cash flow is expected to reach $2.7 billion in 2027 and $3.5 billion in 2030.

Uli Hirschkowitz, manager of hedge fund Bennu Pharmama and longtime Teva analyst, said the guidance was strong and the market was anticipating this, with the stock price rising 9% in the previous five sessions. Today, stock is now 1.57% off. The company’s market capitalization is just over $20 billion.

Teva CEO Richard Francis said the company added $1 billion to its innovative revenue in the two years since it acquired the post, breaking through glass ceilings attributed to Austedo. The product could reach revenues of $2.5 billion in 2027 and $3 billion in 2030, according to the company. Teva’s guidance is primarily based on this product.

Francis added that when he came to Teva, he felt market skepticism about the company’s ability to return to innovative leadership. Since then, he said the new product Uzedi has been launched and positive results have been achieved in advanced clinical trials of the other two products.

TEVA plans to submit its second long-acting schizophrenia treatment, olanzapine, for approval by the US Food and Drug Administration (FDA) in late 2025. This sees Duvakitug, a treatment for inflammatory bowel disease with a potential expansion into additional indications that achieved good phase II trial results in late 2024. Dali, a dual action rescue inhaler for asthma in a phase 3 trial, is expected to have a peak sale of around $1 billion.

Emrusolmin, which Teva describes as “a potential class treatment for multiple systems atrophy, a potential treatment for rare and fatal neurodegenerative diseases without currently approved treatments,” is considered to have a peak sale of over $2 billion, but the potential for celiac treatment is extended to $1 from the FDA yesterday.

Francis said the launch will take place after the launch of the five drugs, as well as five plans. He said the possibility was even greater than it looked, reaching $10 billion, but added that there is no major patent expiration date on the horizon. Generics could launch five new biosimilar products by 2027, in addition to 13 existing ones.

Published by Globes, Israel Business News – En.globes.co.il – May 29, 2025.

©Copyright of Globals Publisher Itonut (1983) Ltd., 2025.