Teva Pharmaceutical Industries (NYSE:TEVA) used its fourth-quarter 2025 earnings call to emphasize progress under its “Pivot to Growth” strategy, pointing to continued momentum in its innovative products, a stable generics base, expanding biosimilars portfolio, and ongoing balance sheet improvement. Management also outlined a milestone-rich 2026 for research and development, while discussing how one-time items affected fourth-quarter comparisons and how those dynamics factor into 2026 guidance.
2025 results and the impact of the Sanofi milestone
CEO Richard Francis said Teva delivered a 5% revenue increase to $1.7 billion on the company’s reported slide (with separate disclosure of results including and excluding Sanofi milestones), with EBITDA up 12% to $5.3 billion, EPS up 19% to $2.93, and free cash flow up 16% to $2.4 billion. He added that net debt to EBITDA was 2.5x, with a longer-term goal of 2.0x by 2027.
On a GAAP basis, Kalif said Q4 revenue was approximately $4.2 billion, up 2% year-over-year in U.S. dollars (down 1% in local currency). GAAP net income and EPS were $480 million and $0.41, respectively, and included the milestone payments. He also noted that growth in key innovative products and stability in generics were partially offset by lower proceeds from the sale of certain product rights compared with Q4 2024.
Innovative brands drive growth: AUSTEDO, UZEDY, and AJOVY
Francis said Teva surpassed $1 billion in Q4 revenue for its innovative portfolio and called out strong performance across its three growth engines:
- AUSTEDO: Francis said Q4 revenue was $725 million, up 40% year-over-year, and full-year revenue was about $2.2 billion, up 35%. He cited 10% TRx growth and a 19% rise in milligram volume, driven by new patients and adherence, and noted that AUSTEDO XR represented 60% of new patients. Management acknowledged Q4 benefited from year-end inventory stocking and a favorable gross-to-net item; Kalif later characterized the one-time gross-to-net benefit at about $100 million and said the “vast majority” of the $100 million referenced in Q&A was inventory-related. Francis said excluding those items, Q4 growth would still have been about 20%.
- UZEDY: Francis said Q4 revenue was $55 million, up 28%, and full-year revenue grew 63% to $191 million. He reported TRx volume increased 123% year-over-year and that more than 83% of NBRx came from patients transitioning from all therapies or treatment-naïve, which he said supported market expansion rather than share shift. Management described UZEDY as the fastest-growing long-acting injectable in its category.
- AJOVY: Francis said Q4 revenue was $211 million, up 43%, and full-year revenue was $673 million, up 30%. He said AJOVY was the number one preventive anti-CGRP injectable in top U.S. headache centers and led in 30 markets across Europe and international markets.
During Q&A, Francis said Teva’s approach for AUSTEDO has been to balance “value and access,” describing disciplined contracting amid a more competitive environment. He added that the AUSTEDO range for 2026 implies brand growth of roughly 11% to 18% after backing out the Q4 inventory build. For UZEDY, he said the company’s assumptions incorporate the mix between Medicaid and Medicare, noting profitability differences between channels.
Pipeline updates and a catalyst-heavy 2026
Head of R&D and Chief Medical Officer Dr. Eric Hughes outlined multiple late-stage programs, describing three phase III programs and two phase II programs. He highlighted external validation across several programs, including funding or partnerships involving Royalty Pharma, Sanofi, and Abingworth.
Key pipeline developments discussed on the call included:
- Olanzapine LAI: Hughes said Teva submitted the filing on December 9 and expects an EU submission in Q2. He said the company hopes for approval at the end of the year.
- DARI (Dual Action Rescue Inhaler): Hughes said Teva completed targeted enrollment at the end of 2025 and continued enrolling to accelerate the “back end” of the study. He emphasized the inclusion of pediatric, adolescent, and adult patients and said having pediatrics and adolescents in the label could be a differentiator.
- Duvakitug (TL1A): Hughes said Teva expects maintenance data in the first half of 2026 and described the importance of durability in chronic diseases like UC and Crohn’s. He said the maintenance dataset represents 58 weeks of exposure with two doses administered subcutaneously every four weeks. He also said phase III studies (SUNSCAPE and STARSCAPE) started on time with partner Sanofi and are being accelerated. Francis added Teva plans to announce two new indications for Duvakitug later in the year.
- Anti-IL-15: Hughes said Royalty Pharma provided funding for a phase II/III program in vitiligo, calling it external validation. He said vitiligo results are expected in the first half of 2026 and that a second proof-of-concept study in celiac disease with a biopsy endpoint is expected in the second half of 2026. In Q&A, he said the vitiligo study is a single-arm trial of about 38 patients with facial VASI and total VASI endpoints and emphasized the need for systemic options beyond currently available topical therapy.
- Emrusolmin: Hughes said enrollment is progressing quickly in the phase II study and that Teva plans to over-enroll to strengthen the dataset. He noted mean survival in the disease after diagnosis is six to 10 years and said the company is targeting a futility analysis by the end of 2026. He also said the program has received fast track and orphan designation.
Hughes also pointed to a New England Journal of Medicine publication related to AJOVY data and said it supported recognition of innovation in migraine, including pediatric episodic migraine.
2026 outlook: Revlimid headwind, margin focus, and transformation savings
Kalif guided to 2026 revenue of $16.4 billion to $16.8 billion, which he said represents about 1% growth to 2% decline versus 2025. He said the outlook reflects continued innovative portfolio momentum and low single-digit growth in global generics, largely offset by an expected $1.1 billion headwind from generic Revlimid in 2026.
Teva guided to non-GAAP gross margin of 54.5% to 55.5% in 2026, versus 54.7% in 2025 excluding milestone payments, with improvement driven by portfolio mix and transformation savings. Operating expenses are expected at 27% to 28% of revenue, with a higher impact from transformation savings in the second half. Kalif guided to approximately $800 million in finance expense and a non-GAAP tax rate of 16% to 19%, resulting in non-GAAP EPS of $2.57 to $2.77 and free cash flow of $2.0 billion to $2.4 billion.
Management said quarterly progression in 2026 should improve through the year, with Q1 expected to be “light.” Kalif attributed that to the loss of about $300 million of Q1 2025 generic Revlimid revenue and the sequential impact of Q4 2025 AUSTEDO inventory and gross-to-net benefits. He also said Q4 2026 AUSTEDO revenue could potentially be down year-over-year due to purchasing patterns and pricing ahead of IRA implementation in January 2027.
On cost actions, Kalif said Teva achieved $70 million in transformation savings in 2025 and remains on track for about $700 million in savings by 2027, with roughly two-thirds realized by the end of 2026. Francis and Kalif both described the transformation program as designed to fund investment in growth drivers while supporting a path to higher margins.
Biosimilars: expanding portfolio and new launches through 2027
Francis said Teva now has 10 biosimilar assets in the market globally, with six additional launches expected between now and the end of 2027, and a further set of assets planned to launch from 2028 onward. He said Teva has launched the most biosimilars since 2020 and described its portfolio as the second-largest in the industry. Francis said Teva is targeting $400 million of biosimilar growth by 2027.
In response to questions on cadence and strategy, Francis said most of the near-term launches will span both the U.S. and Europe and emphasized Europe’s quicker uptake and predictability. He cited upcoming biosimilars including Prolia, Xgeva, Simponi, and Xolair, adding that Simponi is U.S.-only. He said Teva expects to continue expanding the biosimilars business primarily through partnerships, describing the economics as attractive with the right partner.
About Teva Pharmaceutical Industries (NYSE:TEVA)
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.
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