Teva Pharmaceutical Industries Ltd. (TEVA), the global generic drug giant, will release its first-quarter results on Wednesday (April 29). At that time, the market will closely monitor whether the company’s ongoing strategic transformation receives further validation.
Teva’s transformation strategy, named “Pivot to Growth,” was officially announced in 2023. For many years, the company has been the world’s largest manufacturer of generic drugs. During a period of relatively limited competition in the healthcare sector, Teva dominated its market niche. However, success attracted competition, leading to a decline in profit margins and overall profits due to market share battles.
Teva’s counter-strategy has been to prioritize the development and commercialization of its own patented drugs. The company had such products before, but the strategic shift has elevated them to a more critical position. So far, this strategy has proven effective. Teva recently succeeded in developing its first “blockbuster” drug—defined as a product with annual sales exceeding $1 billion. This star drug, named Austedo, is used to treat two neurological movement disorders.
In 2025, Austedo’s global sales, calculated in local currencies, increased by 34% year-over-year to nearly $2.3 billion. Two other major “innovative brand” drugs also achieved encouraging growth: migraine treatment Ajovy saw sales rise 3% to $673 million; and emerging psychiatric drug Uzedy saw sales soar 63% to $191 million.
It is important to note that Teva’s business remains fundamentally based on generics and biosimilars, which together accounted for 54% of the company’s total revenue in 2025. Consequently, the company’s overall revenue growth for the year was relatively modest at just 4%, reaching nearly $17.3 billion. However, given their relatively low prices and increasingly intense competition, these products have outperformed some expectations, with sales growing by 2% in 2025.
Since announcing the “Pivot to Growth” strategy, Teva has successfully built a pipeline encompassing several high-potential drugs, including Duvakitug for colitis/Crohn’s disease and Olanzapine LAI for schizophrenia.
Even drugs in the final stages of development require considerable time to gain approval and eventually reach store shelves. Therefore, Teva’s most impressive growth lies not in the short term, but in the coming years, after these pipeline projects are successfully commercialized.
Analysts covering Teva’s stock do not anticipate the company delivering stellar first-quarter results. The consensus forecast projects revenue of $3.79 billion, a decline of nearly 3% compared to the same period in 2025; earnings per share (EPS) are expected to be $0.46, a 12% decrease year-over-year.
However, the full-year forecast for 2027 paints a different picture. Revenue is expected to rebound that year, growing 4% from 2026 to nearly $17.2 billion; EPS is projected to increase by 17% to $3.13. Given the company’s promising pipeline, some believe the 2027 forecasts may be conservative and that future growth could be even stronger.
Taking everything into consideration, a more prudent strategy is to wait for any potential weakness in Teva’s stock price following the earnings release before purchasing the shares. Even if the stock experiences a modest rise, given Teva’s considerable growth potential, its current valuation remains attractive.
