Teva Pharmaceutical Industries (TEVA) has staged a remarkable comeback from the brink of crisis. Once deeply mired in debt, patent cliffs, and litigation troubles, the company’s stock has surged 97% over the past 12 months. The market is optimistic about its expanding biosimilar pipeline, and this rapidly growing business segment may mean the stock has further room to rise.
However, a rising stock price and an expanding pipeline do not necessarily mean it is worth buying right now. Can biosimilars truly bring substantial change to a business of this size? Has the era of easy money passed, or are there still more opportunities? The following analysis explores these questions.
Biosimilars are products that closely replicate biologic drugs such as antibodies or proteins. Unlike small-molecule generics, which can be synthesized in large volumes at low cost, biosimilars are expensive and slow to produce. As a result, Teva sources most of its biosimilars through its biotech partner Alvotech, with Alvotech handling R&D and manufacturing, while Teva is responsible for commercialization in the U.S. market.
This means Teva only captures a portion of revenue from a category with thin margins and intense competition. Biosimilars must be launched at significant discounts to branded drugs, and prices are further compressed as new entrants increase competition.
The generic versions of AbbVie’s Humira serve as a cautionary tale. More than a year after launch, these products saw slow market penetration until pharmacy benefit managers introduced versions priced far below the brand-name drug. Even so, as of the end of 2024, Humira generics held only about a 21% market share, while Teva’s biosimilar Selarsdi competes with several rivals for the remainder of the market.
Currently, two biosimilars from Teva’s partnership with Alvotech have been launched in the U.S.: Simlandi (a generic version of Humira), launched in May 2024, and Selarsdi (a generic version of Stelara), launched in February 2025. Three other products are under review by the U.S. Food and Drug Administration (FDA). Applications for biosimilars of the inflammatory disease drug Simponi and the eye disease drug Eylea were resubmitted in June 2026 and are within a six-month review period; an application for an interchangeable biosimilar of the intestinal disease drug Entyvio was also accepted in the same month.
Teva expects its biosimilar business to roughly double by 2027, reaching approximately $800 million.
In short, the current rebound relies mainly on Teva’s branded drugs, led by Austedo. Used to treat tardive dyskinesia and involuntary movements associated with Huntington’s disease, Austedo generated approximately $2.3 billion in sales in 2025. In addition, the migraine drug Ajovy and the schizophrenia drug Uzedy contribute smaller portions of revenue.
The challenge with betting on the stock’s future growth now is that the distressed valuation that once made the stock an easy win is long gone. With revenues expected to be flat or even decline in 2026, investors should proceed with caution.
