ewsba.se
Teva reported Q1 revenue of $4.0 billion (‑1% y/y) with adjusted EBITDA up 2% to $1.1 billion and non‑GAAP EPS of $0.53, while its innovative portfolio grew 41% led by Austedo ($578M, +41%), UZEDY (+62%) and AJOVY (+35%).
Teva announced the planned acquisition of Amylyx to add ecopipam for Tourette syndrome for an upfront $700 million plus up to $200M in milestones, expects the deal to close late Q2/early Q3, sees ~80% gross margin if launched in 2027, and expects the asset to be accretive to non‑GAAP EPS starting in 2028 (with ~$75M incremental 2026 operating costs and the $700M treated as IP R&D).
Management reiterated its 2027 targets — mid‑single‑digit revenue growth, ~30% non‑GAAP operating income, net debt/EBITDA <2 and 80% cash‑to‑earnings — and said the board has instructed planning for a potential share‑repurchase program subject to approval.
Interested in Teva Pharmaceutical Industries Ltd.? Here are five stocks we like better.
MarketBeat Week in Review – 02/03 - 02/07
Teva Pharmaceutical Industries (NYSE:TEVA) reported first-quarter 2026 results that management said reflected continued momentum in its innovative portfolio, while also outlining the company’s first acquisition under its “Pivot to Growth” strategy: the planned purchase of Amylyx and its Tourette syndrome candidate ecopipam.
President and CEO Richard Francis said Teva had a “good start to the year,” led by Austedo, UZEDY, and AJOVY. Teva reported revenue of $4.0 billion, down 1% year-over-year, while adjusted EBITDA rose 2% to $1.1 billion. Non-GAAP EPS increased to $0.53 from $0.52, and free cash flow increased to about $200 million (with CFO Eli Kalif later citing $188 million for the quarter).
→ Corning Beats Q1 Estimates but Drops 9% on Guidance Miss
Teva Pharma: Why This Generic Drug Giant Is a Smart Buy Now
Francis said revenue was “down 1% or up 7%, excluding both the Japan divestment and excluding generic Revlimid,” adding that Teva was “able to mitigate the decrease in generic Revlimid revenues also as planned.”
Kalif noted Teva’s Q1 2025 results included “approximately $75 million revenue contribution from the Japan business venture,” which was divested March 31, 2025, and also referenced the prior-year contribution from generic Revlimid.
→ Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall?
2 Generic Drug Stocks Ready to Surge in 2025
Teva’s innovative portfolio grew 41% in the quarter, Francis said, with each of the company’s three key brands posting double-digit gains:
Austedo revenue increased 41% to $578 million (U.S. revenue of $559 million). Francis said growth reflected “13% growth” in prescriptions (TRx) and “milligram growth of 20%,” pointing to new patient growth and improved adherence. He also said once-daily Austedo XR represented “over 60% of new patients.” Teva reiterated full-year Austedo revenue guidance of $2.4 billion to $2.55 billion.
UZEDY revenue rose 62% to $63 million, with “continued prescription growth of 75% TRx,” according to Francis. He highlighted market share gains, saying UZEDY nearly doubled the market share of risperidone long-acting injectables from “5%–9%” since launch, and said UZEDY’s new-to-brand prescriptions were largely from patients transitioning from oral therapy or antipsychotic-naïve patients.
AJOVY revenue grew 35% to $196 million. Francis said growth was driven by both the U.S. and Europe, citing market share gains, volume growth, and improved access.
Kalif said Teva’s non-GAAP gross margin was 52.9%, “better than our expectation,” supported by the continued growth in innovative products and a favorable generics mix. Non-GAAP operating margin was 24%, down about 50 basis points year-over-year, which Kalif attributed mainly to “higher planned investment in sales and marketing to support our innovative growth.”
→ Verizon’s Signal Strength: The Turnaround Call Is Loud and Clear
Francis described the planned acquisition of Amylyx as Teva’s first under the Pivot to Growth strategy. Teva said the deal would add ecopipam, which Francis called “a first-in-class asset with compelling efficacy and favorable tolerability in Tourette syndrome.” He framed Tourette syndrome as “a serious life-altering pediatric neurological disorder with limited good options today,” arguing that current options often force trade-offs between efficacy and tolerability.
In Q&A, Francis said there are “about 100,000 children pediatrics who suffer from Tourette’s,” with “only about 50,000” receiving therapy and “less than 30%” staying on therapy after one year. He said Teva expects to deploy a “small pediatric sales force” for ecopipam, while leveraging existing CNS capabilities such as patient services, managed markets, medical science liaisons, and Teva’s broader experience in movement disorders.
Kalif outlined the transaction terms: an upfront payment of $700 million in cash, plus “additional commercial milestones of up to $200 million.” Teva expects the transaction to close in “late Q2 or early Q3,” subject to customary conditions. If approved and launched in 2027, Teva expects ecopipam to have “a gross margin profile of approximately 80%.” Kalif said the company expects Amylyx to be accretive to non-GAAP EPS “starting in 2028.”
Teva also addressed how it will reflect the acquisition in guidance. Kalif said Teva expects the acquisition to be treated as an asset deal, with the $700 million upfront consideration flowing through the R&D line as “IP R&D expenses.” Teva also expects about $75 million of additional operating expenses in 2026 related to Amylyx starting in Q3, including transaction costs. Kalif said there was no change to Teva’s free cash flow guidance range of $2.0 billion to $2.4 billion.
On the regulatory package and safety considerations, EVP of Global R&D and Chief Medical Officer Eric Hughes said ecopipam’s Tourette program includes “two well-controlled studies,” including a phase II and a randomized withdrawal phase III study. He said suicidality events were “extremely low” and “balanced within the placebo-controlled parts” of studies, adding there was “no signal at all with regards to suicidality.” Hughes also emphasized an absence of weight gain, metabolic changes, and extrapyramidal symptoms, which he contrasted with D2 receptor antagonist antipsychotics.
Asked about a potential REMS, Hughes said, “We don’t see this program having a REMS,” while noting that a suicidality warning could be typical for the drug class.
Francis said Teva expects “seven milestone readouts this year,” citing upcoming updates across multiple programs including anti-IL-15 data in vitiligo (H1) and celiac disease (H2), a futility analysis for emrusolmin in multiple system atrophy by year-end, and a phase III conclusion for Teva’s dual action rescue inhaler (DARI) program.
Hughes added that Teva submitted olanzapine LAI in Europe “just yesterday,” after an FDA submission in December, and said Teva is “looking forward to that approval by the end of this year.” He also said Teva completed enrollment in the phase III FLAIR study for the DARI program with “over 2,700 patients” and expects an “end of the year completion of events.”
On transformation and longer-term targets, Francis reiterated Teva’s 2027 goals, including mid-single digit revenue growth, “non-GAAP operating income of 30%,” net debt to EBITDA of less than 2, and cash-to-earnings of 80%. Kalif said Teva remains on track to achieve about two-thirds of its $700 million savings target by the end of 2026, as part of margin expansion efforts.
Kalif also said Teva’s board instructed management to plan for a potential share repurchase program, subject to legal requirements and further board approval, with timing and amount dependent on market conditions, share price, and other investment opportunities aligned with the company’s strategy.
Management also said Teva continues to monitor geopolitical developments in the Middle East. Kalif said operations remain uninterrupted with “no material impact on our 2026 guidance,” while noting only a “nominal” increase in some transportation and energy-related expenses.
Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) is an Israeli multinational pharmaceutical company and one of the world's largest manufacturers of generic medicines. The company's core activities include the development, production and marketing of generic pharmaceuticals alongside a portfolio of specialty branded medicines. Teva supplies finished dosage forms and active pharmaceutical ingredients (APIs) to markets around the globe and operates manufacturing and research facilities in multiple countries.
Teva's product range covers oral solids, injectables, inhalation products and other dosage forms across therapeutic areas such as central nervous system disorders, respiratory, oncology, pain and infectious disease.
The article "Teva Pharmaceutical Industries Q1 Earnings Call Highlights" was originally published by MarketBeat.