Teva says ‘on track’ for 30% operating profit margin by 2027

The company said, “In Q2 2025, we continued to execute on the four key pillars of our Pivot to Growth strategy, announced in May 2023, and entered into its second phase – ‘Accelerate Growth.’ During this phase we expect to focus on growing our innovative portfolio, aligning capital allocation to invest in higher value activities, reinforcing our commitment to patients, and optimizing our organization and operations. Delivering on our Growth Engines – on the first pillar, we continued to demonstrate strong performance of our key innovative products – AUSTEDO, AJOVY, and UZEDY. Collectively, these products grew ~26% in Q2 2025 YoY in local currency. We raised the 2025 revenue outlook for these products by $95 million at the midpoint: AUSTEDO raised to $2,000 million – $2,050 million, AJOVY raised to $630 million – $640 million and UZEDY raised to $190 million -$200 million. This growth is driven by the strength of the product profiles, continued promotional activities in the U.S., and focused execution by our sales and marketing teams globally. Stepping Up Innovation – on the second pillar, we continued to accelerate the development of certain key pipeline assets. We anticipate filing olanzapine LAI’s NDA in Q4 2025 and target full enrollment for DARI’s Phase 3 trial at the end of 2025, as well the announcement of the start of the Phase 3 Crohn’s disease and ulcerative colitis programs for duvakitug in Q4 2025. Additionally, on June 16, 2025, Teva (TEVA) and Fosun Pharma announced collaboration in Asia for TEV-56278, Teva’s internally-discovered Anti-PD1/IL-2 ATTENUKINE asset, which is expected to accelerate its development, while also freeing up additional resources to accelerate the development of Teva’s key pipeline assets. Sustaining Our Generics Powerhouse – on the third pillar, we remain focused on strengthening our world-class global generics business with a streamlined portfolio of high-value complex generics and biosimilars; a robust pipeline, as well as an integrated global manufacturing and commercial footprint. In the past few quarters, we achieved several successful launches of biosimilars and other high-value complex generics including octreotide, SELARSDI, EPYSQLI. On July 15, 2025, we also launched fidaxomicin tablets in the U.S. Focusing our Business – Lastly, on the fourth pillar, to accelerate our growth, we are actively transforming our business through portfolio and global manufacturing footprint optimization. On May 7, 2025, we announced the Teva Transformation programs which are expected to generate ~$700 million of net savings through 2027. Under these programs we expect to achieve ~$70 million net savings in 2025, or ~$140 million on a full year run-rate basis, reflecting ~20% of the total programs savings. Our ongoing efforts to allocate capital in a disciplined manner include, among others: debt repayment of ~$1.4 billion at maturity in the first half of 2025 and refinancing of an additional ~$2.3 billion of debt, our recently completed divestment of our business venture in Japan, our intention to divest our API business through a sale, and ongoing programs to improve working capital efficiency. Teva continues in its effort to sell its active-pharmaceutical ingredient business and is engaged with prospective purchasers. The timing and structure of the planned transaction are subject to ongoing consideration and the consummation of the sale remains contingent on reaching a definitive agreement, subject to the approval by Teva’s Board of Directors. On December 31, 2024, Teva classified its API business as held for sale.”