TEVA

- Interested in Dr. Reddy's Laboratories Ltd? Here are five stocks we like better. - Q2 FY2027 revenue fell 1.5% year over year to INR 8,671 crore, primarily because of lower North American lenalidomide sales, though the underlying business grew at a double-digit rate. EBITDA margin was 20.6%, and management expects margins to remain above 20% while targeting 25% over the longer term. - Dr. Reddy's expects to relaunch semaglutide in November 2026, subject to validation of its revised API. Management maintained its target of 6 million to 7 million devices for the fiscal year, with Canada expected to receive most of the initial supply. - India and emerging markets posted strong growth, while North American generics excluding lenalidomide also grew at double-digit rates. The company advanced its biosimilars pipeline with U.S. rituximab approval and preparations for a potential abatacept launch. - Teva Pharmaceuticals Stock: Unlock Value in This Generic Drug Gem Dr. Reddy's Laboratories (NYSE:RDY) reported second-quarter FY2027 revenue of INR 8,671 crore, or $905 million, down 1.5% from a year earlier but up 7.4% sequentially, as lower North American lenalidomide sales offset growth in its underlying business. Chief Financial Officer M.V. Narasimham said the company's base business, excluding lenalidomide in North America, delivered double-digit growth. EBITDA, including other income, totaled INR 1,783 crore, or $186 million, representing a 20.6% margin. Profit attributable to equity holders was INR 925 crore, or $97 million, while diluted earnings per share were INR 11.1. → The AI Buildout Is Only 15% Complete—Here Is Where the Next Dollar Actually Goes - 2 overlooked stocks that crushed earnings but traded lower Management attributed the revenue performance to new product launches and favorable foreign-exchange movements across several operations, partly offset by weaker results in Europe and the pharmaceutical services and active ingredients, or PSAI, segment. Gross margin was 52.1%, improving 562 basis points from the prior quarter but declining 254 basis points from a year ago. Narasimham said the year-over-year decline largely reflected lower lenalidomide sales. The preceding quarter had been affected by provisions for inventory and other costs tied to semaglutide API-related challenges. → GM Beat and Added a $20 Billion Buyback—Why Did the Stock Fall? - Drugmaker GSK: Becoming a Healthier Value Stock SG&A spending increased 6% year over year to INR 2,808 crore, or 32% of revenue, due to personnel costs following annual increments, foreign-exchange movements and higher freight costs associated with supply-chain disruptions from the Middle East crisis. R&D spending fell 16% year over year to INR 524 crore, representing 6% of revenue, due primarily to lower generics development spending. During the question-and-answer session, Narasimham said the company expects R&D spending to return to a range of 7% to 8% of revenue in coming quarters. He also said higher costs for key starting materials, solvents and outbound logistics had an EBITDA impact of about 100 basis points and are expected to continue through the third and fourth quarters if current conditions persist. → Tech Stocks Took a Hit—These 2 Pharma Stocks Are Near New Highs Chief Executive Officer Erez Israeli said management expects EBITDA margins to remain above 20% and reiterated the company's longer-term goal of reaching 25%. He cited a more favorable business mix, growth in India, emerging markets and consumer health, as well as expense controls and new-product launches. Israeli said Dr. Reddy's expects to relaunch semaglutide in November 2026, subject to successful validation. The company has addressed its API scale-up issue and has shipped the necessary API to its fill-and-finish partner, he said. Validation of the drug product using the revised API remains underway. Most semaglutide supply is expected to go to Canada, with additional volumes intended for Latin America and, to a lesser extent, Africa. Israeli said management remains confident in its previously discussed target of 6 million to 7 million devices during the fiscal year, citing orders already received. For the 12 months beginning in April, he said the company is preparing for an estimated run rate of 12 million to 15 million pens, though he characterized that forecast as tentative. Generic semaglutide has been approved in 10 countries, including Canada and India, as well as markets in Latin America, Africa and the Middle East. Israeli said regulatory processes are continuing across a total of 89 markets, although some approvals were delayed because product samples needed to be supplied after the scale-up issue was resolved. North America generics revenue was $264 million, down 29% year over year due to lenalidomide but up 12% sequentially. Excluding lenalidomide, the business posted double-digit growth, supported by new product launches. The company launched six products during the quarter, including a first-to-market launch of sugammadex injection. The branded franchise, including India, emerging markets and nicotine replacement therapy, accounted for 53% of total revenue. Emerging-markets revenue rose 24% year over year and 12% sequentially to INR 2,059 crore, supported by product launches, acquisitions and favorable currency movements. India revenue increased 17% year over year and 8% sequentially to INR 1,851 crore, driven by recent launches, acquired brands, price increases and higher volumes. European revenue, including nicotine replacement therapy, fell 6% year over year to EUR 127 million. Management cited generic price erosion and the impact of operating-model changes following the integration of the nicotine replacement therapy business. Israeli said that business is growing under its new model, though reported sales comparisons will continue to be affected by the shift away from payments to former handler Haleon. PSAI revenue declined 19% year over year to $88 million because of lower API volume uptake. Israeli said the CDMO business generated more than $100 million in revenue over the past 12 months and is expected to grow through discovery, innovation-focused projects, production transfers from larger companies and clinical-stage work. He said the company aims for the CDMO operation to reach two to three times its current size within three to four years. Dr. Reddy's received U.S. Food and Drug Administration approval for its rituximab biosimilar, which will be commercialized in the U.S. through Fresenius Kabi. The company also launched nivolumab in India, marking its entry into biosimilar immune oncology in the country. Israeli said the company is awaiting the FDA's establishment inspection report for its Bachupally facility as it pursues approval for abatacept, which has a Dec. 22 goal date. He said Dr. Reddy's is preparing to launch upon approval, although broader formulary-driven uptake would likely occur about six months later. Management estimated that a fair U.S. market-share range for the intravenous version could be 15% to 25%, assuming the company is initially competing against the innovator. The company expects to file its subcutaneous abatacept application around February or March 2027. Israeli said the commercial infrastructure for the U.S. launch has largely been established, with only limited additional hiring anticipated. As of Sept. 30, Dr. Reddy's reported net cash of INR 2,502 crore, or $261 million. The company expects full-year capital expenditures of approximately INR 1,600 crore to INR 1,700 crore, below its earlier guidance of roughly INR 1,800 crore. Dr. Reddy's Laboratories Limited is a global pharmaceutical company headquartered in Hyderabad, India. Founded in 1984 by Dr. Kallam Anji Reddy, the company develops, manufactures and markets medicines intended to make healthcare more accessible. Its business includes generic prescription drugs, active pharmaceutical ingredients, biosimilars, specialty products and over-the-counter consumer healthcare products. Dr. Reddy's offers medicines across therapeutic areas such as cardiovascular care, diabetes, oncology, gastrointestinal health, pain management and dermatology. The company serves patients and healthcare providers in India, the United States, Europe and a range of other international markets, including emerging markets. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Dr. Reddy's Laboratories Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Johnson & Johnson's JNJ third-quarter 2026 adjusted earnings came in at $2.59 per share, beating the Zacks Consensus Estimate of $2.53. Earnings declined 7.5% from the year-ago period due to costs related to recent business development transactions. Adjusted earnings exclude intangible amortization expense and special items. Including these items, reported earnings were 9 cents per share, down 95.8% year over year. Reported earnings reflected a significant one-time special charge related to the proposed talc litigation resolution and the impact of recent business development transactions. Sales of this drug and medical devices giant came in at $25.4 billion, marginally missing the Zacks Consensus Estimate of $25.44 billion. Sales rose 5.9% year over year. Operational sales increased 6%, while adjusted operational sales (excluding the impact of acquisitions/divestitures and currency) rose 6.1%. Domestic sales rose 9.1% to $14.96 billion. International sales increased 1.5% to $10.44 billion, reflecting operational growth of 1.8% and an unfavorable currency impact of 0.3%. Innovative Medicine sales rose 7.7% year over year to $16.76 billion. Operational sales increased 7.9%, while adjusted operational growth was 8%. U.S. sales advanced 11.1%, while international sales increased 2.4% on a reported basis. Innovative Medicine sales beat the Zacks Consensus Estimate of $16.68 billion. Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment's growth. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant/Lazcluze, Spravato and Caplyta also contributed. These gains were partly offset by lower sales of Stelara, Remicade, Imbruvica and Opsumit/Opsynvi. Worldwide oncology sales increased 16.4% to $7.60 billion. Sales of blockbuster multiple myeloma medicine Darzalex rose 15.4% to $4.24 billion, missing the Zacks Consensus Estimate of $4.33 billion. Imbruvica sales declined 18.8% to $563 million, missing the consensus estimate of $602 million. Erleada sales increased 9.4% to $1.02 billion but missed the Zacks Consensus Estimate of $1.07 billion. Among newer cancer drugs, Carvykti sales surged 35.5% to $710 million. Tecvayli sales jumped 76.6% to $312 million, while Talvey revenues increased 40.9% to $171 million. Rybrevant/Lazcluze sales climbed 62.3% to $320 million. Worldwide immunology sales increased 1.3% to $4.22 billion despite continued biosimilar competition for Stelara. Sales of Stelara declined 54.4% to $716 million but exceeded the Zacks Consensus Estimate of $651 million. According to patent settlements and license agreements, Amgen AMGN, Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars in 2025 after the drug lost patent exclusivity in the United States. Tremfya remained a key growth driver, with sales surging 68.3% to $2.40 billion. Tremfya sales beat the Zacks Consensus Estimate of $2.28 billion. Remicade revenues decreased 17.3% to $394 million. Simponi/Simponi Aria sales declined 17.3% to $568 million. Biosimilars for Simponi entered the European market in the second quarter of 2026. This may have hurt sales in the third quarter. Neuroscience sales increased 17.3% to $2.38 billion, supported by strong demand for Spravato and Caplyta. Spravato revenues grew 36.1% to $624 million, while Caplyta sales advanced 66.1% to $398 million. Invega Sustenna/Xeplion/Invega Trinza/Trevicta sales increased 7.3% to $998 million. Pulmonary hypertension drug Uptravi recorded sales of $483 million, down 0.1%. Opsumit/Opsynvi sales declined 35.7% to $372 million as generic drugs entered the U.S. market late in the second quarter. Xarelto revenues increased 2.7% to $653 million. MedTech sales increased 2.5% year over year to $8.64 billion but missed the Zacks Consensus Estimate of $8.77 billion. Operational sales increased 2.5%. Excluding the impact of all acquisitions and divestitures and currency, on an adjusted operational basis, worldwide sales rose 2.5%. Cardiovascular sales rose 4.3% to $2.31 billion. Electrophysiology revenues increased 4.9% to $1.49 billion, while Shockwave sales grew 16.8% to $325 million. Abiomed sales declined 2.3% to $412 million in the quarter. Over the past two quarters, MedTech's Abiomed sales have declined due to slow procedural volumes driven by usage patterns. Abiomed procedure volumes are being hurt by uncertainty among physicians after a U.K. study questioned the benefit of using Impella devices in certain high-risk procedures. As regards J&J's other MedTech segments, Surgery sales declined 0.6% to $2.53 billion. Vision revenues increased 4.4% to $1.46 billion. Orthopaedics sales rose 3.2% to $2.35 billion. J&J raised the lower end of its 2026 sales guidance to $101.0-$101.4 billion from $100.8-$101.4 billion. The revised projection indicates sales growth of 7.2%-7.6% compared with the previous expectation of 7.0%-7.6%. Operational sales growth is expected in the range of 6.7%-7.1% versus the prior expectation of 6.5% -7.1%. Adjusted operational sales growth is now expected between 6.4% and 6.8% compared with the earlier projection of 6.2%-6.8%. The adjusted earnings per share guidance was raised to $11.05-$11.15 from $10.96-$11.11. The revised guidance indicates adjusted earnings growth of 2.4%-3.3% compared with the previous expectation of 1.6%-3.0%. J&J delivered mixed third-quarter results, with adjusted earnings beating estimates but sales missing the same. Innovative Medicine sales exceeded estimates, supported by continued strength in Tremfya and contributions from newer therapies. However, key cancer drugs, Darzalex, Erleada and Imbruvica fell short of expectations. MedTech revenues also missed estimates. In the previous quarter, J&J had projected an improvement in MedTech growth in the second half of the year. However, the segment's third-quarter performance suggests that the anticipated recovery is yet to gain momentum. Stelara's loss of exclusivity negatively impacted Innovative Medicine's operational growth by approximately 690 basis points. J&J increased its 2026 guidance. However, shares declined around 2% in pre-market trading on Tuesday, likely reflecting investor disappointment with the quarterly results, particularly the weaker-than-expected MedTech performance. J&J's shares have risen 27.8% year to date compared with 13.0% appreciation of the industry. Image Source: Zacks Investment Research J&J currently has a Zacks Rank #4 (Sell). Johnson & Johnson price-consensus-chart | Johnson & Johnson Quote A better-ranked drugmaker is Bayer BAYRY, which has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Bayer's shares have risen 12.8% so far this year. Estimates for its 2026 earnings per share have increased from $1.28 to $1.29 over the past 60 days. Bayer's earnings beat estimates in three of the trailing four quarters, while matching estimates in one, with the average surprise being 20.08%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Johnson & Johnson JNJ will begin the earnings season for the drug & biotech sector when it reports its third-quarter 2026 results on Oct. 13. The Zacks Consensus Estimate for third-quarter sales and earnings is pegged at $25.37 billion and $2.66 per share, respectively. The Zacks Consensus Estimate for 2026 earnings has declined from $11.48 to $11.21 over the past 60 days, while that for 2027 earnings has declined from $12.81 per share to $12.17 over the same time frame. Image Source: Zacks Investment Research The healthcare bellwether's performance has been pretty impressive, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 1.39%, on average. In the last reported quarter, the company delivered an earnings surprise of 2.11%. Image Source: Zacks Investment Research J&J has an Earnings ESP of +2.10% and a Zacks Rank #3 (Hold), indicating a likely positive surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 have a good chance of delivering an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here. Sales in J&J's Innovative Medicine segment are expected to have been driven by higher sales of key products such as Darzalex, Erleada, Carvykti, Tecvayli and Rybrevant/Lazcluze in oncology; Tremfya and other immunology products; and Spravato and Caplyta in neuroscience. Darzalex, Carvykti, Tecvayli and Rybrevant/Lazcluze are all benefiting from expanding use and additional indications. The Zacks Consensus Estimate for Darzalex, Tremfya and Erleada is pegged at $4.33 billion, $2.24 billion and $1.07 billion, respectively. Other products like Invega Sustenna/Xeplion/Invega Trinza/Trevicta, Uptravi and Opsumit are likely to have witnessed continued growth. J&J also expects an increased contribution from newer launches in the third quarter than in the second quarter. Its new drugs are Inlexzoh, a first-of-its-kind drug-releasing system for treating high-risk non-muscle invasive bladder cancer, Imaavy (nipocalimab) for treating generalized myasthenia gravis, and Icotyde, an oral targeted peptide inhibitor of the IL-23 receptor for treating moderate-to-severe plaque psoriasis (PsO). However, sales of Simponi/Simponi Aria and Remicade declined in the second quarter, a trend likely to have continued in the third quarter. Also, generic/biosimilar competition for key drug, Stelara, and lower sales of Imbruvica are likely to have hurt top-line growth. Sales of Stelara are likely to have declined due to the impact of biosimilar competition. According to patent settlements and license agreements, Amgen AMGN,Teva Pharmaceutical Industries TEVA, Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars in 2025 after the drug lost patent exclusivity in the United States. Stelara's LOE negatively impacted the Innovative Medicine segment's growth by 760 basis points in the second quarter. We expect the negative impact to have been steeper in the third quarter of 2026. The Zacks Consensus Estimate for Stelara sales is pegged at $634.0 million. Biosimilars for Simponi entered the European market in the second quarter of 2026, while a generic version of Opsumit entered the U.S. market late in the second quarter, which may have hurt sales of these drugs in the third quarter. Imbruvica sales are likely to have declined in the United States due to new oral competition. The Zacks Consensus Estimate for Imbruvica stands at $602.0 million. Overall, J&J expects continued above-market growth in the Innovative Medicine segment in the third quarter. The Zacks Consensus Estimate for J&J's Innovative Medicine unit is pegged at $16.7 billion. Sales in J&J's MedTech segment moderated in the second quarter due to weaker sales in Cardiovascular as competitive pressure in electrophysiology and lower Abiomed sales offset continued double-digit growth at Shockwave. J&J expects only modest Abiomed growth in the second half of 2026. While J&J's Cardiovascular sales may remain slow in the third quarter due to weakness in Abiomed, its other three businesses, Surgery, Vision, and Orthopedics, are likely to have continued accelerating in the third quarter. Overall, the MedTech business is expected to perform better in the second half of the year than it did in the first half, driven by strength in Vision, Orthopedics, Surgery and better performance in Cardiovascular. The Zacks Consensus Estimate for J&J's MedTech segment stands at $8.77 billion. Nonetheless, a single quarter's results are not so important for long-term investors. Let us delve deeper to understand whether to buy, sell or hold J&J stock ahead of earnings. J&J's shares have outperformed the industry so far this year. The stock has risen 24.0% year to date compared with 11.9% appreciation of the industry. Image Source: Zacks Investment Research From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company's shares currently trade at 20.70 forward earnings, higher than 18.03 for the industry. The stock is also trading above its five-year mean of 15.65. Image Source: Zacks Investment Research J&J's biggest strength is its diversified business model, as it not only has pharmaceuticals but also medical devices, which help it withstand economic cycles more effectively. J&J's Innovative Medicines segment is the company's primary growth engine despite Stelara LOE, driven by key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth. J&J's recent launches, including Inlexzo, Imaavy and Icotyde, are gaining traction and could become significant growth drivers in future quarters. Though J&J's MedTech growth slowed in the second quarter, the company expects the segment to do better in the second half. J&J expects 2026 to be a year of accelerated growth. It is confident about achieving its target of generating more than $100 billion in revenues in 2026, with $49.4 billion already generated in the first half. It expects sales to continue to improve in 2027, with a "line of sight" to double-digit growth by the end of the decade. J&J believes that it is already achieving this growth. Though J&J's total revenues are currently rising in a mid-single-digit range, excluding Stelara, its top line grew in a double-digit range in both the first and second quarters of 2026. J&J faces its share of headwinds like the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi, and softness in MedTech. Though the litigation issue is close to resolution, it has not yet been fully resolved. J&J enjoys a diversified revenue base, a large cash-generating business and a long history of returning capital to shareholders. It is witnessing steady sales and earnings growth, continued strength in its Innovative Medicine business, and improving fundamentals and outlook. Despite several headwinds, J&J looks quite confident that it will be able to navigate these challenges. J&J has also seen some positive developments recently surrounding its long-running talc litigation No matter how the third-quarter's results play out, one should stay invested in JNJ, considering its price appreciation, consistent earnings and sales growth, important new launches and pipeline depth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

With a market cap of $15.3 billion, Deckers Outdoor Corporation (DECK) is a global footwear and lifestyle company best known for its HOKA, UGG, and Teva brands. The Goleta, California-based company designs and markets premium footwear, apparel, and accessories across performance running, outdoor, casual and fashion categories. Its products are sold through both wholesale partners and its direct-to-consumer e-commerce and retail channels. The company is expected to announce its fiscal Q2 2027 results soon. Ahead of this event, analysts predict DECK to post an EPS of $1.82, flat from the year-ago quarter. However, it has surpassed Wall Street's earnings estimates in the last four quarters. - What a 20-Year Deal With Amazon Means for Constellation Energy Stock - Trump Says Towns That Block Data Centers Will End Up 'Backwards and Poor' and Promises 'Far Lower Taxes' to the Ones That Say Yes - Marvell Stock Investors Have 1 Date to Watch. Here's What Could Be Revealed. - Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2026, analysts forecast the footwear maker to report an EPS of $7.50, a 6.8% rise from $7.02in fiscal 2025. Shares of Deckers Outdoor have declined 23.8% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 15% gain and the State Street Consumer Discretionary Select Sector SPDR ETF's (XLY) 8.1% dip over the period. DECK has lagged the broader market over the past year as investors have grown cautious about slowing growth and profitability pressures. Weak constant-currency growth over the past two years suggests Deckers has struggled to sustain momentum and defend market share in an increasingly competitive footwear market. At the same time, its 18.8% free cash flow margin over the past two years also limits financial flexibility, reducing the company's ability to step up buybacks, dividends, or strategic investments. Analysts' consensus view on DECK stock is cautiously optimistic, with an overall "Moderate Buy" rating. Among 27 analysts covering the stock, 10 recommend "Strong Buy," two suggest "Moderate Buy," 12 indicate "Hold," and three advise "Strong Sell." The average analyst price target for Deckers Outdoor is $117.32, suggesting a potential upside of nearly 48.3% from current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

TEL AVIV, Israel and PARSIPPANY, N.J., Sept. 23, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) announced today that it will issue a press release on its third quarter 2026 financial results on Tuesday, November 3, 2026, at 7:00 a.m. ET. Following the release, Teva will conduct a conference call and live webcast on the same day, at 8:00 a.m. ET. In order to participate, please register in advance here to obtain a local or toll-free phone number and your personal pin. A live webcast of the call will be available on Teva's website at: https://ir.tevapharm.com/Events-and-Presentations. Following the conclusion of the call, a replay of the webcast will be available within 24 hours on Teva's website. About Teva Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com. Cautionary Note Regarding Forward-Looking Statements This Document and the presentation at the conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully compete in the marketplace; our ability to successfully execute on our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and to profitably commercialize our innovative medicines and biosimilar portfolio, whether organically or through business development, to sustain and focus our portfolio of generic medicines, and to execute on our organizational transformation and to achieve expected cost savings; our significant indebtedness; our business and operations in general; compliance, regulatory and litigation matters; other financial and economic risks; and other factors discussed in our Quarterly Report on Form 10-Q for the second quarter of 2026, and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned “Risk Factors” and “Forward Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements. Teva Media Inquiries [email protected] Teva Investor Relations [email protected]

A month has gone by since the last earnings report for BridgeBio Pharma (BBIO). Shares have lost about 10.7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is BridgeBio Pharma due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for BridgeBio Pharma, Inc. before we dive into how investors and analysts have reacted as of late. BridgeBio reported a second-quarter 2026 loss of 78 cents per share, wider than the Zacks Consensus Estimate of a loss of 64 cents. Despite the miss, the figure improved compared to the year-ago loss of 95 cents. Revenues surged 120% year over year to $243.7 million, beating the Zacks Consensus Estimate of $222.6 million. This growth was primarily driven by Attruby. Attruby generated $222.4 million from product sales in the United States. The figure more than tripled from the $71.5 million recorded in the year-ago period. Per BridgeBio, Attruby continued to gain share among treatment-naive patients, which management views as the key long-term growth driver for the franchise. Meanwhile, the pool of patients switching from Pfizer’s Vyndaqel/Vyndamax, a key competing ATTR-CM therapy, has begun to normalize after elevated switching activity in prior quarters. Management expects continued first-line share gains to support sales growth going forward. Royalty revenues increased to $15.4 million from $1.6 million, primarily reflecting Attruby sales in the EU and Japan, where it is marketed as Beyonttra. License and services revenues fell more than 84% year over year to $5.8 million, as the prior-year period benefited from a $30 million regulatory milestone. Research and development expenses increased 34% year over year to $149.4 million, reflecting continued investment in late-stage programs. Selling, general and administrative expenses climbed 44% to $186.3 million as the company supported Attruby commercialization and pre-commercial work for upcoming launches. As of June 30, 2026, cash, cash equivalents and marketable securities totaled $720.2 million, down from $940.2 million in the previous quarter. The figure excludes the $1 billion preferred equity financing that closed July 1, which lifted the company's cash balance to about $1.7 billion. Since the earnings release, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -18.21% due to these changes. At this time, BridgeBio Pharma has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, BridgeBio Pharma has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. BridgeBio Pharma belongs to the Zacks Medical - Generic Drugs industry. Another stock from the same industry, Teva Pharmaceutical Industries Ltd. (TEVA), has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Teva Pharmaceutical Industries reported revenues of $4.14 billion in the last reported quarter, representing a year-over-year change of -0.8%. EPS of $0.02 for the same period compares with $0.66 a year ago. For the current quarter, Teva Pharmaceutical Industries is expected to post earnings of $0.71 per share, indicating a change of -9% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.8% over the last 30 days. Teva Pharmaceutical Industries has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BridgeBio Pharma, Inc. (BBIO) : Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Teva Announces Positive Topline Results from Phase 2a Study in Celiac Disease for Its Anti-IL-15 Antibody Teva-discovered TEV ‘408, a novel anti-IL-15 monoclonal antibody, demonstrated statistically significant and clinically meaningful prevention of gluten-induced intestinal damage vs placebo following a single subcutaneous dose. TEV ‘408 was well-tolerated with no safety signals observed to date. Together with the vitiligo program, the celiac disease topline results further support TEV ‘408 as a potential pipeline-in-a-product opportunity in multiple diseases. Teva will hold an investor call and live webcast today,Wednesday, September 2, 2026, at 8:00 a.m. ET to discuss these data. TEL AVIV, Israel, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today announced positive topline results from an ongoing Phase 2a study of TEV ‘408, an investigational anti-interleukin-15 monoclonal antibody, in adults with celiac disease. The study met its primary endpoint, demonstrating statistically significant and clinically meaningful prevention of gluten-induced intestinal damage versus placebo at week 8. TEV ‘408 was well-tolerated, with no safety signals observed to date. “A strict gluten-free diet has long been the only option for people living with celiac disease. Yet, even with strict adherence to a gluten-free diet, many continue to experience symptoms, intestinal damage and a significant impact on their daily lives,” said Eric Hughes, MD, PhD, Executive Vice President, Global R&D and Chief Medical Officer at Teva. “These results underscore the potential to move beyond managing gluten exposure and address celiac disease at its biological source. They also strengthen our confidence in targeting the IL-15 pathway as an approach to reducing immune-driven intestinal damage.” The ongoing randomized, placebo-controlled study enrolled 50 adult participants with celiac disease on a gluten-free diet (GFD) with minimal intestinal damage at baseline as measured by the villous height-to-crypt depth ratio (Vh:Cd ≥2.0) and symptoms. Two weeks after receiving a single dose of TEV ‘408, participants began a six-week daily gluten challenge (GC). The study assessed biopsy-based measures of intestinal damage and inflammation along with patient-reported symptoms. At week 8 (the end of the GC) TEV ‘408: Showed statistically significant and clinically meaningful prevention of gluten-induced intestinal damage versus placebo, as measured by the trial’s primary endpoint of Vh:Cd ratio with a least squares (LS) mean change from baseline of -0.43 compared with -0.88 for placebo (treatment difference of 0.45, 95% CI: (0.06, 0.84), p<0.05). Showed a favorable effect on intestinal inflammation as measured by density of intraepithelial lymphocytes (IELs) compared with placebo; the LS Mean change from baseline in the density of IELs, was an increase of 27.60 for placebo compared to 0.37 for TEV ‘408 treated participants (treatment difference of -27.23, 95% CI: (-39.67, -14.79)). Demonstrated lower GI symptom scores versus placebo, as assessed using the Celiac Disease Symptom Diary (CDSD), a patient-reported outcome (PRO). Was well-tolerated with no emerging safety signals. Additional analyses from the ongoing Phase 2a study are underway. Teva plans to present further data from the study at a future scientific meeting. Teva Investor CallTeva will hold an investor call and live webcast today, Wednesday, September 2, 2026, at 8:00 a.m. ET/ 2:00 p.m. CET to discuss these data. To participate, please register in advance here. To access a live webcast of the presentation, visit Teva’s Investor Relations website. An archived version of the webcast will be available 24 hours after the end of the live discussion. About TEV ‘408TEV ‘408, discovered by Teva, is an investigational human monoclonal antibody designed to inhibit interleukin-15 (IL-15), a cytokine involved in immune-mediated pathways. TEV ‘408 has a high affinity and potency (in vitro) with a prolonged half-life that supports the potential for convenient subcutaneous dosing. TEV ‘408 is being studied as a potential therapy for celiac disease in a Phase 2a study and was granted Fast Track designation in that indication by the U.S. FDA in May 2025. By blocking IL-15 activity, TEV ‘408 aims to reduce the IL-15-driven intestinal inflammation and damage that are characteristic of celiac disease. TEV ‘408 is also being evaluated in a Phase 1b study as a treatment for vitiligo. Following encouraging results from the ongoing Phase 1b study in vitiligo, Teva is advancing the investigational asset into a Phase 2b study in vitiligo. By blocking IL-15 activity, TEV ‘408 aims to reduce the immune-mediated destruction of melanocytes (pigment-producing cells) resulting in white patches on the skin characteristic of vitiligo. Teva entered a strategic funding agreement with Royalty Pharma in January 2026. Under the agreement, Teva is eligible to receive up to $500 million to accelerate the clinical development of TEV ‘408. If approved and launched, Teva will pay a milestone to Royalty Pharma and a royalty on worldwide net sales of TEV ‘408. About Celiac DiseaseCeliac disease is a serious autoimmune disease in which exposure to gluten triggers an immune response that damages the small intestine. It affects approximately 1% of the global population, or more than three million people in the U.S. alone, although many individuals remain undiagnosed. Celiac disease can cause chronic digestive symptoms, fatigue, nutrient deficiencies, and other health complications that can significantly impact daily life. There are currently no approved therapies for celiac disease. A strict gluten-free diet (GFD) remains the standard of care, yet even with careful adherence, patients may continue to experience symptoms, reduced quality of life, and ongoing intestinal inflammation or damage due to inadvertent gluten exposure. For people living with celiac disease, managing the condition often requires constant vigilance around meals, travel, work, and social activities, creating significant daily burden. The limitations of current management approaches underscore the need for therapies that address the underlying drivers of disease and improve outcomes for patients. About TevaTeva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, Teva’s commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, Teva is dedicated to addressing patients’ needs, now and in the future. At Teva, We Are All In For Better Health. To learn more about how, visit www.tevapharm.com. Cautionary Note Regarding Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully develop and commercialize TEV-’408 for the treatment of celiac disease and for the treatment of vitiligo; our ability to successfully compete in the marketplace, including our ability to develop and commercialize additional pharmaceutical products; our ability to successfully execute on our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize our innovative medicines and biosimilar portfolio, whether organically or through business development; and other factors discussed in our Quarterly Report on Form 10-Q for the second quarter of 2026 and in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned “Risk Factors,” and “Forward-Looking Statements.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements. Teva Media Inquiries: [email protected] Investor Relations Inquiries: [email protected] A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2392ceaa-b1f3-44a8-bd7e-4c775053e093

Teva Pharmaceutical Industries stock has delivered a very strong 284.4% gain over the past 5 years, yet current checks send mixed signals as the Discounted Cash Flow (DCF) estimate points to undervaluation while market based multiples screen the shares as expensive. Investors looking at Teva today see a stock with powerful recent momentum against a low overall value score that suggests it is not a straightforward bargain. A 284.4% return over 5 years highlights how much Teva has already rewarded long term holders, which can make fresh entry points more sensitive to valuation. Recent moves to expand the neuroscience portfolio, including the agreed acquisition of BioXcel Therapeutics' dexmedetomidine sublingual film and the FDA priority review for ecopipam in pediatric Tourette syndrome, can support expectations for future cash flows, while ongoing patent litigation outcomes and generic competition risk may still weigh on how durable those cash flows are seen to be. Teva scores 2 out of 6 on a broad value screen, which leans expensive overall even though the intrinsic value estimate suggests the share price trades at a 43.7% discount. The issue now is whether Teva Pharmaceutical Industries' current price already reflects the recent progress and pipeline news, or if the gap to the intrinsic value estimate leaves room for further upside. Spot opportunities beyond Teva Pharmaceutical Industries by scanning our hand picked list of 44 high quality undervalued stocks that also combine strong recent momentum with discounted cash flow support. The Discounted Cash Flow (DCF) model values Teva Pharmaceutical Industries by projecting future free cash flows and discounting them back to today. Teva currently reports latest twelve month free cash flow of about $1.37b, and the model assumes these cash flows continue to grow rather than contract over the coming decade. On this basis, the DCF framework points to an estimated intrinsic value of about $64.78 per share in $ terms. That compares to the current share price, which implies the stock trades at roughly a 43.7% discount and appears undervalued on this metric. The FDA priority review for ecopipam helps explain why some investors may already be optimistic, yet the share price still sits well below what the cash flow projections support. Overall, the DCF work suggests Teva Pharmaceutical Industries stock currently appears undervalued relative to its projected cash generation. Our Discounted Cash Flow (DCF) analysis suggests Teva Pharmaceutical Industries is undervalued by 43.7%. Track this in your watchlist or portfolio, or discover 44 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Teva Pharmaceutical Industries. P/E is often the go to check for Teva Pharmaceutical Industries because earnings are a key focus for established pharmaceutical businesses. On this measure, Teva trades on a P/E of about 60.1x, which is far above both the pharmaceuticals industry average of 16.7x and a peer group average of 19.3x. The tailored fair P/E ratio for Teva is estimated at 34.1x, which already reflects its sector, risk profile and business mix. The current 60.1x multiple sits well above that level. As a result, the stock screens as expensive compared with what this framework would typically support for Teva. On the P/E check, Teva Pharmaceutical Industries stock appears overvalued relative to both its fair multiple and its sector benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Teva Pharmaceutical Industries pick up where this valuation puzzle leaves off and explain what future growth, margins and earnings would need to look like for the stock to be worth materially more or materially less than today's price. Each Narrative links a fair value to a specific storyline about Teva Pharmaceutical Industries' potential catalysts and risks so you can track which scenario seems to be unfolding over time on the Community page. Community narratives on Teva Pharmaceutical Industries sit far apart, with one side focused on a portfolio and margin story and the other on concentration and execution risk. Bull case: 11% undervalued Read the full Bull Case to see why Teva Pharmaceutical Industries could be undervalued Bear case: 10% overvalued Read the full Bear Case to see why Teva Pharmaceutical Industries could be overvalued Do you think there's more to the story for Teva Pharmaceutical Industries? Head over to our Community to see what others are saying! Teva Pharmaceutical Industries presents a split picture. The Discounted Cash Flow (DCF) work points to meaningful intrinsic value upside, while the P/E based view screens the stock as overvalued compared with sector and tailored fair multiples. That mismatch reflects a cash flow story that looks stronger than what current earnings multiples imply. However, the broader low value score signals that most other checks are not supportive. The key question from here is whether Teva can deliver the cash flow, margin and pipeline execution needed to close that gap, or whether the current discount to intrinsic value is the market pricing in ongoing risk around competition and legal outcomes. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TEVA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Alvotech? Here are five stocks we like better. First-half results declined as manufacturing slowed during facility and quality-system improvements, with revenue falling to $212 million and adjusted EBITDA to $47 million. Management said production returned to planned levels near the end of Q2 and reaffirmed 2026 guidance of $650 million–$700 million in revenue and $180 million–$220 million in adjusted EBITDA. Alvotech strengthened liquidity through a $165 million equity offering and a term loan facility of up to $75 million, providing approximately $240 million in new capital for manufacturing, pipeline investment and commercialization. The FDA closed its Reykjavik inspection with a VAI classification, and reviews are underway for biosimilar applications targeting Simponi Aria, EYLEA and Prolia/Xgeva. Potential U.S. approvals are expected in Q4 2026, while the company continues expanding its commercial portfolio and developing more than 30 pipeline candidates. Teva Pharmaceuticals Stock: Unlock Value in This Generic Drug Gem Alvotech (NASDAQ:ALVO) said its first-half 2026 results reflected a temporary manufacturing slowdown tied to facility and quality-system improvements at its Reykjavik site, while management reaffirmed full-year revenue and adjusted EBITDA guidance and highlighted upcoming regulatory decisions and product launches. The company reported first-half revenue of $212 million, down from $306 million a year earlier, as manufacturing output was constrained during work to address FDA inspection observations and prepare resubmissions for several biologics license applications. Adjusted EBITDA was reported at $47 million for the first six months, compared with $54 million in the prior-year period, while gross margin was 54%, versus 55% a year earlier. → Datavault AI Locks Down CyberCatch in $94M Security Rollup 2 Generic Drug Makers With Growing Runways CEO Lisa Graver said the revenue decline did not reflect weaker underlying demand for the company’s biosimilars. Because Alvotech supplies products to commercial partners under a business-to-business model, reported product revenue also depends on partner ordering patterns, inventory movements and product availability, she said. Manufacturing returned to planned operating levels near the end of the second quarter, and the company is now working to rebuild supply for customers. CFO Linda Jónsdóttir said Alvotech expects the fourth quarter to be its strongest period of 2026, with product revenue gaining momentum in the third quarter and a larger step-up expected in the fourth quarter. → Michael Burry Is Betting Against Palantir Again—Should Investors Care? Alvotech reaffirmed its 2026 guidance for total revenue of $650 million to $700 million and adjusted EBITDA of $180 million to $220 million. Management said the outlook assumes a strong fourth quarter, supported by increased manufacturing output, product shipments and milestone revenue. First-half product revenue was $106 million, while licensing revenue also totaled $106 million. Jónsdóttir said licensing and milestone revenue can be uneven because it depends on development progress, regulatory submissions and contractual events. → Home Depot Analysts See a Path to $375 and Beyond The company ended June with $143 million in cash. During the quarter, Alvotech completed an equity offering that generated approximately $165 million in gross proceeds. The company also secured an additional term loan facility of up to $75 million from existing lenders, which it said was drawn in the third quarter and therefore was not included in the June cash balance. Management said the equity and debt financing together provided approximately $240 million of new capital to support pipeline investment, manufacturing and supply needs, launch preparations and global commercialization. Jónsdóttir added that the company expects “healthy de-leveraging” in 2027. Founder and Executive Chairman Róbert Wessman said the company’s investments in its manufacturing facility and quality systems enabled it to resubmit U.S. BLAs in June. The FDA subsequently closed its May 2026 routine GMP surveillance inspection of the Reykjavik facility with a Voluntary Action Indicated, or VAI, classification in July. Chief Operating Officer Joseph McClellan said the FDA acknowledged the resubmissions as complete responses to prior action letters and assigned review completion dates consistent with a standard six-month review process. The applications cover proposed biosimilars to Simponi Aria, EYLEA and the dual Prolia/Xgeva products. Graver said the resubmissions position the company for potential FDA approvals in the fourth quarter of 2026. In particular, she said Alvotech expects to be first or among the first biosimilars approved for Simponi and Simponi Aria in the U.S. Regarding Simponi-related litigation, Graver said Alvotech expects a decision during the fourth quarter and said the company believes it has a strong intellectual-property position. She did not provide a precise U.S. launch date, noting that the company commercializes through partners. Management said Alvotech now has five biosimilars contributing to product revenue, expanding beyond its biosimilars to Humira and Stelara. Its biosimilars to Simponi, EYLEA, and Prolia/Xgeva have begun contributing to sales. In the U.S. adalimumab market, Graver said biosimilars now account for more than 60% of the market. SIMLANDI holds the No. 2 biosimilar position, she said, while the company’s European adalimumab product Hukyndra has continued to see demand four years after its launch. For ustekinumab, U.S. biosimilar penetration has reached roughly 60%, according to Graver. She said SELARSDI is participating in the expanding market, while European product Uzpruvo remains positioned in an established biosimilar market. AVT05 and AVT06 have launched in more than 10 European markets, including Germany, France, the U.K., Spain and Italy. Graver said AVT05 has shown encouraging early momentum in Germany and Spain and launched in Japan in July as the country’s only approved golimumab biosimilar. AVT06 also launched in Japan earlier this year and has seen what management described as strong early uptake. McClellan said Alvotech has more than 30 biosimilar candidates in development. The company expects its next wave of products to receive approvals during 2027 through 2029, including proposed biosimilars to Keytruda, Entyvio and EYLEA HD. Alvotech and Dr. Reddy’s have begun a randomized, double-blind pharmacokinetic similarity study of their proposed Keytruda biosimilar in participants with melanoma. For Entyvio, the company’s European marketing authorization application for intravenous AVT16 and high-concentration subcutaneous AVT80 has been validated. The FDA has accepted AVT16’s BLA, and management said it expects to announce a U.S. AVT80 submission soon. Decisions are expected in 2027. For AVT29, Alvotech’s proposed EYLEA HD biosimilar, the company plans its first regulatory submission in Europe during 2026. Its U.S. clinical study is underway, with a U.S. submission anticipated in 2028. Alvotech (NASDAQ:ALVO) is a global biopharmaceutical company specializing in the development, manufacturing and commercialization of biosimilar medicines. The company focuses on creating high‐quality, cost‐effective alternatives to established biologic therapies in areas such as immunology, oncology and other specialty care fields. By leveraging in‐house research and a vertically integrated manufacturing platform, Alvotech aims to bring approved biosimilars to market more rapidly and with greater cost efficiency than many traditional biosimilar developers. Since its founding in 2013, Alvotech has built a diversified pipeline of monoclonal antibody biosimilars, targeting blockbuster reference products including adalimumab (originally branded Humira), bevacizumab (Avastin) and ustekinumab (Stelara). This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Alvotech Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:00 a.m. ET President and Chief Executive Officer - Richard Francis Executive Vice President and Chief Financial Officer - Eliyahu Kalif Head of Global R&D and Chief Medical Officer - Eric Hughes Investor Relations - Christopher Stevo Operator: Hello, everybody, and welcome to the Q2 2026 Teva Pharmaceutical Industries Earnings Conference Call. My name is Elliott. I'll be coordinating your call today. [Operator Instructions] I would now like to hand over to Christopher Stevo. Please go ahead. Christopher Stevo: Thank you, Elliot. Good morning and good afternoon, everyone. Thank you for joining us on our second quarter call. Obviously, our materials are posted to our website this morning. So please see those. . And before I turn the call over to our CEO, Richard Francis, I'd like to remind everyone that we will be making forward-looking statements on this call. The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described in our earnings press release and our most recent forms 10-Q and 10-K filed with the SEC. Any statements that we make are only as of today, and we undertake no obligation to update these statements subsequently. With that, Richard Francis. Richard Francis: Thanks, Chris, and good morning and good afternoon, everybody. Thank you for joining the call today. And on me joining me on the call today will be Dr. Eric Hughes, Head of Global R&D and Chief Medical Officer; and Eli Kalif, our Chief Financial Officer. . Now, moving on to decide how we start with the pivot to growth side. Our strategy that we launched in 2023 just based on these 4 pillars. We'll summarize how we've performed against these 4 pillars in quarter 2. But just to give you a quick overview on delivery on our growth engines, AUSTEDO, AJOVY and UZEDY all delivered strong Q2 performance, and we are raising our full year revenue guidance for these products. It's worth reminding you that the innovative portfolio is reshaping our financial profile with stronger revenue growth, margins and free cash flow. As we move on to the second pillar step-up, innovation in our pipeline this year will provide 8 major milestones, and this now includes ecopipane, and this gives us the potential for 5 submissions over the next 5 years. With regard to creating the generics powerhouse, biosimilars are becoming a growth platform within generics. We now have 15 products in the market and 14 in our pipeline, and we see additional opportunities through further partnerships. And on our final pillar, focused the business, I think we made great progress on our capital allocation. We've had 1 of the agencies of greatest Fitch to Ingresso grade, and we see the other 2 doing this in the not-too-distant future. We also allocated capital to the acquisition of Amylyx. We closed that deal in June, and we're expecting the launch next year if FDA approves. And then finally, the conversion of the ADS to ordinary shares and the ability to list on the New York Stock Exchange should make investing in Teva accessible to more investors. Now, moving on to the financials. Now, I'm really proud of this slide and you may ask why, but let me walk you through why. Now we have stable revenues despite nearly 8% of headwinds from generic REVLIMID loss year-over-year. We're growing our profit margin as well, 80 basis points. improving gross margins year-over-year driven by strong innovative growth despite this loss of genetic REVLIMID. We've actually grown our EBITDA, obviously excluding the Amylyx acquisition. And our free cash flow is up 31% as a result of our disciplined capital allocation. Now if I go on to the next slide, I'll give you a bit more detail. As you can see, the innovative portfolio has had a strong quarter, up 43% year-on-year. AUSTEDO, up 40%; UZEDY, up 43% and AJOVY, up 56%. Generics is down 15%, and this is largely due to lower generic contribution versus 2025. But if I now go into a bit more detail, starting with the AUSTEDO, a core growth driver here. This is another strong quarter. In the U.S., revenue reached $676 million, up 33% year-over-year and global revenue up 40%. Our demand remained strong with TRx up 14% and milligram growth up 21%, supported by new patient starts and adherence. AUSTEDO XR now represents over 60% of new patients, strengthen convenience, adherence and long-term durability. And because of this strong quarter, we are now increasing our outlook by $50 million at the midpoint. So it's now $2.45 billion to $2.6 billion. It's worth noting that the midpoint there is $2.5 billion, which was the target we gave ourselves for 2027. So we have a chance of beating this year early. But I think more importantly, we see continued momentum and a significant untreated population that still could benefit from AUSTEDO, and hence, our confidence in greater than $3 billion of peak sales. Now moving on to UZEDY. UZEDY continues to grow with strong momentum. It is the fastest-growing long-acting injectable treatment for schizophrenia amongst atypical LAIs. Revenue grew 43% to $77 million in Q2 based on strong demand, and that was reflected in our TRx up 63% year-over-year. The commercial execution has been impressive, and this can be seen with UZEDY nearly doubling the risperidone long-acting share and has now gone from 5% to nearly 10%. And UZEDY is capturing nearly 80% of the risperidone LAI market. And because of this strong performance, we are increasing the outlook by $15 million at the midpoint, so the new guidance is $270 million to $290 million. Now, this continued excellent execution has given us great confidence in the upcoming launch of olanzapine, which I'll now move on to. So olanzapine represents a meaningful next growth opportunity with FDA action and U.S. launch anticipated in Q4 of this year. The unmet medical need is significant. Olanzapine holds roughly 20% of U.S. all prescriptions while olanzapine LAI uses less than 1% of the LAI market. Now, we know this market. We can really leverage the synergies with UZEDY, but also the deep knowledge of the schizophrenia market, whether that's physicians, patients, nest practitioners or some of the long-term care facilities. Our direction of travel is clear to deliver a best-in-class launch that expands treatment options and reinforces our leadership in the LAIS. Olanzapine together with UZEDY gives us a compelling path to expected peak sales of $1.5 billion to $2 billion of revenue. Now moving on to AJOVY. AJOVY demonstrates our ability to execute in competitive innovative markets wherever they may be. We continue to outpace the injectable market growth, and we lead in many of the markets despite entering late. Q2 global revenue reached $244 million, up 56% year-over-year. The U.S. revenue grew 83%, driven by improved contracting, favorable gross to net and market share gains. Ex U.S. momentum remained strong, supported by volume growth and leading brand shares across Europe and international markets. Because of this strong quarter, we're increasing our outlook by $90 million at the midpoint. So now the range is $850 million to $870 million. And looking beyond 2026, we see a clear part to $1 billion peak sales for AJOVY. Now moving on to the newest member of the innovative family, a first-in-class opportunity with compelling efficacy and favorable tolerability in Tourette syndrome, a serious pediatric neurological disorder with limited treatment options. We've already filed with the FDA with a potential launch in the first half of 2027. Now, the unmet medical need is clear. There are 100,000 pediatric patients who live with Tourette syndrome, only 50,000 are treated, and only 20% to 30% remain on therapy after 1 year. So this shows there is a real need for product like with compelling efficacy and favorable tolerability. Now, we're well positioned to execute on this, leveraging our CNS capabilities and the experience we've garnered with AUSTEDO, AJOVY and soon-to-be long-acting olanzapine. Now, this moves on to a slide, which I've never been able to show before actually in my rather long career. And I apologize for the small font, but we had to get everything on 1 slide. And what this highlights is just the innovative pipeline we have and our potential to launch 1 asset per year for the next 5 years, transforming Teva into a leading biopharma company. The near-term launches are clearly sequenced, olanzapine in '26, in '27, followed by DARI and the Q2 '28 to '30. Obviously, all subject to regulatory approvals. But looking up to '35, we see further upside from the additional indications that we've announced that for dubicictid as well as the additional indication of anti-I15 as well as our. We also are pursuing more business opportunities as well as development opportunities that is. Now, moving into our pipeline slide. I'll try and be short on this and allow Eric to talk more through this, but there are some points which I think are worth mentioning. One is, this is a near-term pipeline with many catalysts, as I mentioned in my opening remarks. With agile, we saw the Vitiligo data where we're going to see the CDEC data in the second half of the year. We've got this near-term launches with olanzapine and filed. DARI is progressing well. We've announced 2 new indications for Ducato. So together, all these assets represent over $10 billion of peak sales, although I have realized we said that before, and that was prior to actually adding to this slide as well as the 2 new indications of, so I must remember to update it. Now, what does this all do for Teva? Will it fundamentally transforms our growth profile. Our growth is really accelerating with revenue moving from $4.9 billion in 2022 to an expected $16.5 billion to $16.8 billion this year. And our portfolio is shifting towards higher value innovation with innovative revenue expected to reach 22% of total revenue in 2026, up from 9%, and you can see where it's heading to 2030. Now, with regards to margins, we are creating stronger margins with gross margins expected to expand from 54% to more than 60% by 2030 plus. And this is once again fueled by our inhibitive portfolio. Now, moving on to our generics business. Our generics business is down 15% versus Q2 2025. But I don't think that tells the full story. If you exclude generic REVLIMID, our generic business remained stable. Global Generics was down 2%, the U.S. up 1%, and our ex U.S. decrease mainly was due to lower product launches this year and the cost and cold season. While 2026 is expected to be somewhat softer, we continue to see a stable generics business capable of delivering 1% to 2% annual growth over the long term, supported by a steady flow of our new product launches. I remain very excited about the future of our generics business. And 1 of the main reasons I'm confident is the growth rate that is starting to emerge from our biosimilar portfolio and pipeline. Let me move on to this now. So biosimilars are transforming our generics portfolio. Before pivot to growth, we had 3 biosimilars. Today, we have 15 in the market. And in the next few years, we expect to double it. It's not just the size of our portfolio, it's the execution. In the U.S., 2 out of our 5 products are ranked #1, and our third is neck and neck, and I believe, soon to become number one. In the U.S. -- in the EU, where we have just launched 3 biosimilars, early signs are very positive. We continue to seek partnering to increase this portfolio, and I believe we are becoming the partner of choice because of this excellent execution. And based on our current momentum, we are on track to exceeding our $800 million by 2027. To conclude before I hand over to Eric, we're on track to hit our financial growth targets of mid-single revenue growth, non-GAAP operating income target of 30% and a net debt to EBITDA below 2% and cash conversion earnings of 80%. And with that, I will hand over to Eric. Eric Hughes: Thank you, Richard. Now moving on to our first slide here. I know Richard showed this briefly, but I first wanted to just say it's become very complicated, but it's become very complicated in a great way. We're looking at 5 potential submissions over 5 years. I'll just highlight a few important things on the slide. We've now added ecopitane, which was submitted in June for Tourette syndrome. And we've now added 2 new indications for Duvaqetob. That's hydrogenitis superteva and fibrosenatic Crohn's disease. Two very important indications that I'll get into with a little bit more detail later on. But it's great to see this pipeline and we're executing on it every day. First, I'll start with olanzapine LAI. We are on track for the action date in the fourth quarter of this year. We've had our EU MAA accepted earlier this year. And we just presented a number of different abstracts at the psych Elevate Conference and the Page conference. So all things are go right now on olanzapine LAI, and we're looking forward to an approval at the end of this year. On to ecopitane. Now, 1 of the things that gets me excited first, that this is a mechanism, a brand-new first-in-class mechanism of a D1 antagonist. But even more importantly, this is the first dedicated launch for a treatment for Tourette syndrome. So I think that's going to be a very important aspect of this launch with disease awareness and providing a new treatment for a large unmet medical need. I mean, I'm proud of the fact that we have 2 well-controlled studies, the Phase II showing a decrease in the tick syndrome, not only statistically significant, but clinically meaningful reductions. And we also showed in Phase III, a decrease in the relapse rate, statistically and clinically with a 50% reduction. Since they're all very good signs. But most importantly, this is a treatment that is well tolerated and durable. 66% of the patients in the long-term follow-up remained on treatment with a sustained tick reduction, and we're looking forward to that approval next year. So something to look forward to. Now, moving on to our DARI program, the dual action rescue inhaler for asthma. We have fully enrolled this study over 2,700 patients which includes pediatric, adolescents and adults. We're right on track to see that final event. This is an event-driven study. Our forecast is at the end of this year, and we'll be able to present that data in the early half of 2027. But this is a really great program for patients with asthma. It's answering an unmet medical need, answering the need and the treatment that's dictated in the guidelines. We'll be providing a great treatment with a dual action retail with a dry powder inhaler that's easy to use and with a label that includes pediatrics potentially. Now, moving on to Duvaqito, very exciting this year. We had our publication of our induction data in Nolans for both 2 parallel manuscripts for ulcerative colitis and Crohn's disease. It's great to see the team's work being recognized by such a high impact journal and kudos to their great work. So congratulations to the team. But now furthermore on Duviqita, our Phase III program being run with our partner, Sanofi, is right on track. Our Sunscape and Starscape program in ulcerative ions Crohn's disease. But today, we are very proud to announce the fact that we're adding 2 new indications into our research that includes hydrogeni superativa, which will unlock that non-T2-based indication group and fibrosin Crohn's disease, which unlocks the fibrotic bucket of indications, but also expands and doubles down on our intention and labeling for IBD in the future. So this is a very exciting announcement that we're doing with our partner, Sanofi. I'll get into a little bit more about the importance of these 2 indications next. First, hydrogen super tivo. This is an area I've worked in before. It's an important unmet medical need. This is a result of painful inflammatory abstasies that for skin folds in the body. These people suffer in silence with many different aspects of the disease can be disfiguring and really impact their daily life. It's not uncommon. It's about 1% of the adult population. And there's -- there are treatments out there that had been approved, but there's a long way to go with the amount of efficacy we can achieve. Anti-1 therapy in this area, I think, is perfectly suited. It's a complex disease with multiple different pathways involving both Th1 and Th17 cells, and it has a significant fibrotic component to it. So the pleiotropic effects of TL1A therapy might really be suited well for this. It's also important to note that 15% of people with IBD actually have hydro genius supertiba as well. So there's a lot of scientific rationale here and it's an important market that we can grow in. In addition, we talked about fibrosynotic Crohn's disease. Now this is a very important aspect of people with Crohn's. We've already posted Phase II data with great efficacy in our Phase II study with duvacitub. But now, we're looking at even worse cases of Crohn's disease. 50% of people with Crohn's disease have this fibrostynotic component. And this is where fibrosis, inflammation and edema causes almost total obstructions of the gut. This leads to more hospitalizations, more surgeries, increased health care cost. It's really a driver of some of the worst parts of Crohn's disease. So we're very happy to advance the science. No 1 has been approved for this indication at this point. And I think this is showing our confidence in Crohn's disease and how we want to double down and make that label as patient-friendly as possible. So I'm very excited to be exploring this indication with duvaqito. Now moving on, we showed some great data from our proof-of-concept study earlier last month. with patients with vitiligo and our anti IL-15 program. I always like to start out by saying, first and foremost, it was great to see the patient's perception of their disease change. So 75% of the patients reported an improvement in their facial vitiligo. And here, I'm showing 2 patients who gave a special consent to show the results that they've seen in the study. Now, remember, these 2 patients just had 2 shots of our anti IL-15 antibody. And over a 24-week period, you can see quite a change in both the woman on the left and the gentleman on the right, almost total depigmentation of the cheeks on the women filled in very nicely over 24 weeks. And then the patient on the right, some dramatic changes from total deep implementation with a darker skin care. So these are results that changed the perception of a patient and is very conveniently done with just 2 shots. But as happy as I am about the perception change for the patients. We also met the important regulatory end points. The numbers we posted for the 50, the F 75 and the T body are very competitive for systemic therapies in this area. And this really drove the fact that we went right into our Phase IIb/III study, which will be executed and started this year, so we're moving at speed. We're excited to see the data, and we're moving as quickly as possible. And finally, I'll just mention what's coming up next. So we'll have a readout in the second half of this year and our second Celiac proof-of-concept study. This study is important because it's actually looking at biopsy results after a gluten challenge. So remember, the basic pathology of Celiac disease is the fact that when you have an immune reaction to gluten, there's destruction of the normal bile in the gut and where you have this nice high surface area of villus that absorbs nutrients in the gut when a patient with CIC disease takes gluten that there's almost a complete destruction of that normal villus on -- as you see on histology. And we hope to see in the scrutiny challenge by the biopsies that in fact, we protect the villi from that destruction when we use the anti-IL-1 treatment. So we're looking forward to the readout. That will be the second half of this year, but I think this will be a great advance for patients with CAC potentially based on that data. So on my final slide, I just want to walk through the fact that we are marching through our milestones in 2026. We showed the maintenance data first this year for duvaqito. We did the filing for Ecopytan, our new player on the field. And then, we also showed the vitiligo data just recently for our anti-IL-5 program. We'll have the Celiac data in the second half of this year. DARI is on track for that last event, that last exacerbation by the end of this year, and we'll have that data to talk about in the early part of 2027. Emera Solman is on track to have the futility analysis at the end of the year. We're looking forward to the approval of olanzapine LAI at the end of this year, and then we'll have some anti-PD-1 IL-2 human data by the end of this year as well. So very exciting. We keep executing, and we're looking forward to all these events this year. And with that, I'm going to pass off to my colleague, Eli Kalif. Eliyahu Kalif: Thank you, Eric, and good morning and good afternoon to everyone. I would like to start my review of Q2 '26 results with the following key messages: First, we delivered a solid second quarter results, driven once again by the continued strength of our innovative portfolio. Second, with the increasing mix of innovative revenues, together with our transformation programs, we remain on track to achieve our 30% operating margin target by 2027. And lastly, our disciplined capital allocation strategy and the execution is increasingly recognized by the leading credit rating agencies, including the recent upgrade to investment grade by Fitch. Now moving to Slide 34. Before I discuss our Q2 results, let me briefly recap the MLX Basins acquisition, which closed in June. As Richard highlighted earlier, further strengthens our position in CNS, where we already have strong commercial and development capabilities. From an accounting perspective, as we discussed last quarter, the transaction was treated as an asset acquisition. As a result, we recorded a $724 million as IP R&D expenses during the second quarter. This included the upfront cash consideration, net liabilities acquired as well as the transaction costs. The upfront consideration flow through cash flow from investment activities and, therefore, does not impact free cash flow. As I go through our Q2 performance, I will be making reference to the MLX related impact on our financials to provide a better view of our underlying performance. Now starting with our Q2 GAAP performance on Slide 35. Q2 revenues were approximately $4.1 billion, down 1% in U.S. dollars or 3% in local currency compared to Q2 2025. This decrease was largely driven by lower generics, mainly generics reveled and was largely offset by continued strong growth of our key innovative products, AUSTEDO, AJOVY and UZEDY. GAAP net loss and loss per share were $576 million and $0.49, respectively. Turning now to our non-GAAP performance. Our non-GAAP gross margin in Q2 '26 was 55.4%, an increase of 80 basis points, reflecting a strong growth in our innovative portfolio. Non-GAAP operating margin was 9%, including the impact of MLX related expenses of $726 million. Excluding MLX, our non-GAAP margin would have been 26.6%, slightly below Q2 last year, mainly reflecting higher planned investments in sales and marketing in the first half of this year to support our innovative growth. Overall, we ended the quarter with a non-GAAP EPS of $0.02. The impact from MLX on EPS was $0.61, without which our non-GAAP EPS would have been $0.63. Our free cash flow in Q2 was strong at $622 million, up 31% versus last year. To provide you with some additional color, our Q2 '25 results included $318 million revenue and $223 million EBITDA contribution from our generic REVLIMID. Our financial results this quarter reflected a strong underlying performance if you exclude the impact of generics REVLIMID. Moving to the next slide. As a reminder, our operating margin expansion to 30% is driven by 2 structural elements. The first is a portfolio shift towards higher growth, higher margin innovative products. The second is our transformation program. Altogether, this is approximately 400 basis points of improvement since we announced this program in May last year, despite the impact of generic REVLIMID. This is our core of our financial transformation, moving from a company historically driven by generics to a bar from a company. We continue to make progress to achieve these targets as reflected in our 2026 guidance. Moving to Slide 37. Looking at the first half of 2026, the underlying business continues to demonstrate the strength of our strategy and execution. As you can see, the first half revenue performance reflects strong growth in our innovative portfolio and biosimilars, offsetting more than $600 million of revenue impact from generics REVLIMID. Our non-GAAP operating margin in the first half also demonstrate ongoing improvements in our gross margin profile. As I highlighted last quarter, we expected higher operating expenses in the first half of this year versus the second half, mainly due to the timing of planned investments to support our growing innovative portfolio and upcoming launches. We expect OpEx to normalize with operating leverage and higher impact of the transformation program savings in the second half. Moving to Slide 38. Our balance sheet continued to improve and this is a key enabler of our Pivot to Growth strategy, driving EPS and free cash flow. Over the last few years, we have made significantly improved our leverage profile. At the end of -- our net debt was $12.9 billion, with a net debt-to-EBITDA ratio of 2.8x. Excluding MLX, our net debt-to-EBITDA would have been 2.3x, well on track to achieve our 2x target by 2027. As we continue to pay down our debt, it is expected to result in significantly lower finance expenses by 2030. At the same time, we have continued to transform our working capital management, driving significant improvement as a percentage of revenue, resulting in lower cash conversion cycle. These efforts, combined with the fast-growing innovative portfolio and transformation programs are expected to drive long-term earnings and free cash flow growth. As you can see on the next slide, our execution is increasingly recognized by our leading credit hedging agencies. In May, Fitch upgrade Teva to an investment-grade rating, marking Teva returned to IG for the first time since 2017. This was our third upgrade from Fitch in less than 2 years, underscoring Teva transformation journey. About 2 quarters ago, S&P and Moody's has also upgraded our rating and outlook, respectively. These upgrades are another validation of our disciplined execution and stronger financial profile. With our continued transition to an innovative biopharma company, we are well positioned to get additional rating upgrades. Now, turning to our 2026 outlook on Slide 4. Based on our solid first half results and visibility into the second half, we are raising the midpoint of our full year revenue guidance range by $75 million, and reaffirming the outlook range for operating profit, adjusted EBITDA, EPS and free cash flow. Let me provide you some color on our guidance assumption starting with the revenue. First, our innovative portfolio is performing strongly across all 3 products, AUSTEDO, AJOVY and UZEDY. With the first strong half of performance, we are increasing the combined guidance of this product by approximately $150 million at the midpoint, reflecting a combined 2026 revenue outlook of approximately $3.7 billion and growth of approximately 17% over 2025. On the other hand, we expect our Global Generics revenue for the full year to be flat to down low single digit in local currency compared to 2025, excluding the impact of generic REVLIMID mid and the divestment Japan business. This is mainly due to a fewer high-value launches in '26, lower seasonal on OTC and increased competition in some markets. Moving to the other elements of our financial outlook. We continue to expect 2026 non-GAAP gross margin to be in the range of 54.5% to 55.5%. In addition to the MLX related expenses this year, our operating expenses are expected to be approximately 28% of the revenue for the full year. This is at the higher range on our overall 27% to 28% OpEx, reflecting a deliberate investment we are making to support our growing innovative portfolio and our biosimilars. Our guidance range for the operating income and EBITDA reflect this higher growth investment in OpEx and also a less expected in the second half. Now, let me provide you some additional thoughts on our quarterly phasing for the rest of the year. Overall revenue is expected to be increased over the rest of the year. For AUSTEDO, we continue to see elevated levels of inventory in the channel and expected normalization of this excess inventory in the next 2 quarters. We also continue to expect AUSTEDO revenue in Q4 '26 to be down year-over-year due to the expected changes in purchasing patterns and pricing environments ahead of the IRA implementation in January. In addition, we are preparing for a Q4 launch for our olanzapine LAI. Since the initial volume is expected to be largely samples or vouchers as we establish a payer coverage, you should expect no revenue in Q4. Our non-GAAP margin, we expected improvements in the second half, in line with revenue as well as higher savings from ongoing transformation programs, while gross margin are expected to decline slightly in Q4 versus Q3 due to the anticipated revenue dynamics related to AUSTEDO. Our operating margins are expected to improve sequentially in Q4, driven by the OpEx savings. Moving to the next slide on capital allocation. Over the last few years, we have made significant progress in strengthening our balance sheet. This progress allow us the financial flexibility to invest in our innovative portfolio and pipeline, evaluating value-accretive BD opportunities, along with the optionality of returning capital to our shareholders through a buyback when appropriate. And lastly, I would like to briefly touch on our planned transition to direct ordinary share listing on the New York Stock Exchange. We believe this change will make Teva shares more accessible to a broader investor base. who will be able to buy ordinary shares directly in a seamless manner in addition to the potential inclusion in the leading indexes. We look forward to completing this transition in September and believe it represents another example of our focus on creating a long-term shareholder value. With that, I will now hand it back to Richard for his closing remarks. Richard Francis: Thank you, Eli. So once again, I want to just highlight the fact that we are at a really exciting time at Teva delivering on our acceleration phase of the pivot to growth strategy. As you can see from this slide, we have multiple opportunities to drive the revenue in the short term, medium and long term, and this innovative portfolio is very extensive. I'd also like to add the number of biosimilars we'll be adding as we start to launch these into the market. as well going forward. So in the near future, our incremental growth will come from the next generation of innovation, but we'll have much more to come after that. And so to conclude, we continue our growth journey. The themes are very clear. In a critical year for Teva, we delivered exactly what we said we were going to do. Our pipeline is advancing at speed and our with disciplined capital allocation we believe, is what sets us apart. And with that, I look forward to answering some of your questions with the team here. Thank you very much. Christopher Stevo: And while Elliott is queuing up the questions, I just want to remind everyone if you could try to ask 1 question and 1 brief follow-up, and we'll be happy to take you back into the queue if you want to ask subsequent questions, but just so as many people get a chance to ask questions as possible. So Elliot, whenever you're ready, we can go ahead. Operator: [Operator Instructions] First question comes from Jason Gerberry with Bank of America. Jason Gerberry: Congrats on the quarter. So I just wanted to follow up. So strong performance on AUSTEDO. I think you mentioned 60% new patient start share. Trying to get a sense of your confidence level going into next year that AUSTEDO won't be disadvantaged in formularies as a lower WACC price drug, the payers will be observant of the fact that they shouldn't be using the IRA negotiated price point to advantage the competitor drug. So I just wanted to get your overall sense there. And just as my brief follow-up, any comments on the tariff update in the U.S. and how the supply chain is configured to potentially manage that risk? . Richard Francis: Thanks, Jason. So could you repeat the last question? I just missed it. Jason Gerberry: Yes. Sorry, the last question was just any thoughts on Trump's proposed tariffs in the U.S. and how the supply chain is configured to mitigate that risk? Richard Francis: Okay. Thanks for the question, Jason. So I'm glad you sort of recognize the strong performance of AUSTEDO of 40%. I do want to maybe slightly correct you. I think you said 60% of new starts. The 60% I referred to as 60% of new AUSTEDO starts on the AUSTEDO XR, just as a clarification. That said, we still have very good TRx growth and very good milligram growth, highlighting the impact that AUSTEDO XR does have on the ability for patients to get on the optimal dose and adhere and comply better. And then to your question on the payer dynamics for 2027. I think this is something that we spent a lot of time looking at. There's a few obviously scenarios that can play out this way. But it's worth highlighting that all Medicare plans are required to cover negotiated products in their Part D formularies. That would be like obviously AUSTEDO XR. And so based on that, I think based on the product profile and the significant patient demand as well as the physician excitement around AUSTEDO XR. I think we remain confident in our ability to continue to make sure we can capture a significant amount of patients as we move into 2027. Obviously, how this impacts revenue, we're not really talking about that. We've highlighted the fact that we'll give guidance. When we give guidance on the company, we'll get more data as we go through. And obviously, we end up having more discussions with some of the payers towards the end of the year. But we remain very confident about that. And I'd just like to highlight what I said in my notes, very committed and to above $3 billion of peak sales based on the significant untreated patient population and clearly the momentum that we have around the brand and the execution of the team. Now, with regard to your second question on the recent announcement from the administration on the Trump tariffs. Obviously, this news has only just come out, so we're digesting this and understanding what that could look like. But I would also point out that we do have a number of factories in the United States. I think we're 1 of the largest generic manufacturers in the U.S. But we have a bit of time to work this 1 out and understand what the administration is trying to do. And as you can imagine, we've always been in close discussions with the administration being such a contributor to the health care system in the United States. So thanks for your question. Operator: We now turn to Uma Raffat with Evercore ISI. Umer Raffat: I just wanted to spend a second on the IL-15 ahead of the Celiac readout and just drill down a couple of dimensions. One, I believe the last patient in was April 7, which means they should have been done by early June with the week 8 end point. So I'm just trying to understand sort of the timing of data. I would have thought it could have been as early as today, perhaps along with earnings. I realize that's not what the expectation was, but just wanted to understand the timing and sort of where you are in data analysis. . Also, there's some prior disclosure you've shown on a Phase Ib exploratory celiac study, which shows this separation versus placebo. But the biomarker that it was shown for on the Y-axis was not laid out. What was the biomarker? And then finally, could you remind us what's the amount of gluten per day background that's being used in your ongoing celiac study or your already completed celiac study? Richard Francis: Thanks for the question. I feel you're almost as demanding as I am with regard to wanting to see results as fast as possible. But with that, I'll hand it over to Eric to answer. Eric Hughes: Thank you, Umer. Thank you for the very specific and up-to-date question. So first, the question about the enrollment. So the enrollment that you see on clinical drives. The changes you see there don't always correlate to when we're doing the database lock. So that's the simple answer. I have this. So there's nothing slow or fast about it. It's just as it is. So we'll have that data in the second half of this year. With regards to the question about the biomarker in the first POC, so that was an FSB free acid binding protein. I think I got that right, free acid binding protein. And that's a biomarker, it's not uncommonly used to measure gut inflammation, and that separation we saw from placebo versus active upon that gluten challenges. Really, I mean, it was exciting to me to see that because that really indicated that we're having an impact, and 1 of the things I always like to mention, if you speculate or overread the data, not only did we protect that got with this biomarker by that readout, but it seems to actually get better on -- from the baseline. So whether we are treating a smoldering celiac those patients is something fun to speculate about. So it was this free acid binding protein in that study. And then your final question was the amount of gluten challenge we're giving in the biopsy study that's going to read out in the second half of this year. So we're giving 3 grams every day for 6 weeks. That's a significant challenge in that study. And I think that team thought about there's various different ways you can do it, but that's a significant amount. I'm always impressed to see that we can enroll patients that are willing to do that. So hopefully, that answers all your questions. Operator: We now turn to Louise Chen with Scotiabank. Louise Chen: I wanted to ask you about your biosimilars opportunity. You seem to be talking about that more. And just curious if you could give us a little bit more color on why the growth opportunity is becoming more meaningful now to you? And is there anything in the U.S. market that's changing here any potential actions for the regulators or payers in the horizon that could open up this market even more? Richard Francis: Louise, thanks for the question. So you're right, we are excited. I am excited about the biosimilars. We've been working on this hard to get the portfolio and to get this to market. And I think there are a couple of reasons why I'm excited. One is just the performance of the team we have in the U.S. in the market. And to give you some context, we have not always been first to the market. But what we've shown and what I highlighted today is 2 out of our 5 products in the U.S. market are #1. And I think a third 1 is about to become #1. And that just shows, I think, our capability, which leads a bit into part of your second question, what has changed in the U.S. market? Well, actually, nothing really is changing. It's actually a very difficult complex, fragmented market. And why do I sound somewhat positive about that, I'm not. But what I know is with ever because of our reach and our scale and our scope of what we do, we're able to navigate what is a very fragmented complex market. And I think that's why you're seeing my excitement and about the performance we have in the U.S. If there's changes, I think that will be positive as well because we'll benefit from that. But we have more and more products coming to the U.S. Now in Europe, where we really have been starved of biosimilars. And now, we start to launch them in Europe. What we're seeing is the first indications are that when we launch them, as you would expect, once again from Teva, which is a major player in all European markets, our ability to perform very well early on early signs of saying that we can do that. So the reason why in totality I'm excited is, as you put these 15 biosims together, another 14 that are coming through and more partnerships we're doing. I think this will be a major growth driver for our generics business as a whole. And so that's where my enthusiasm lies, and I hope we'll have a lot more data points to highlight that. And maybe to conclude, we did set ourselves a target for $800 million by 2027, as I said today on the call. We're well on track to exceed that already. So thanks for the question, Louis. Operator: We now turn to Dennis Ding with Jefferies. Dennis Ding: I had a question on celiac. So you guys have talked about using 4 Phase Ib as the bar on CD but that was 0.127 placebo adjusted and had very wide error bars. So this is actually a 2-part question. Number one, why shouldn't we use the CALYPSO data as a bar, which is around I think 0.4 to 0.5 million? And then number two, if you can comment on the interpretability of your data, if you get, let's say, 0.15, 0.2 or 0.3, if you would consider that clinically meaningful? Or is there anything else in your data disclosure that you should point us to? Richard Francis: Over to you, Eric? Eric Hughes: Yes. Thank you, Richard. So Dennis, we're using the bars that we can refer it against. I'm sorry. Forte is the 1 that's reported the number of 0.127. The CALYPSO data, I'm not sure if that's something readily available to us right now. So if we can get that data, that would be great to compare it to. I think the important thing is that you have to remember, these are all somewhat artificial gluten challenge they are different from study to study. We designed a study that we think will give a nice result based on a single dose. Remember, we're doing a single dose looking at a 6-week challenge with a pretty good burden of gluten. The important thing is that we see that delta between the placebo, which should change the most. And hopefully, the active will stay similar. So the 1 that's document is the most and I think is the most comparable is the forte result of 0.127 that you mentioned, and that's the delta between placebo and active. So I'm still kind of saying that's going to be what we're going to measure ourselves against with regards to the results that we have access to. The CALYPSO data, I'm not familiar with that. I'm not sure if that was posted or is available right now. So maybe we can follow up with you on comparing that. There's a lot of different things we're going to get -- we're going to learn from this study, not only the biopsy data, which is critically important for determining how we set up the Phase II and III studies, but also experiential or symptomatology data. So a lot to come there, but I think we're going to stick with comparing to forte at this point. Operator: We now turn to David Amsellem with Piper Sandler. David Amsellem: So 1 on 408 and then 1 on ecopypane. On 408, particularly with Forte getting acquired, I wanted to get your thoughts, Eric, on how you view 408 mechanistically versus compounds that focus on CD122 and act on IL-15 and IL-2? And how you think those agents may or may not have an advantage with respect to 408. So that's a broad question. And I guess, multiple indications encompassing vitiligo and celiac and maybe others. . And then secondly, on ecopitane, can you talk to positioning in the marketplace? As you think about D1 antagonism activity, do you think that there's potential that this could be used ahead of the currently approved antipsychotics that are primarily D2 acting? How do you think about that and particularly considering that those agents are generically available? Richard Francis: Okay. Eric, do you want to start on the NGL50? Eric Hughes: Yes. Okay. Thank you for the question. So first, and maybe discuss the competition and how we approach the development of anti IL-15 versus how Forte approach it. There's nothing wrong with the 2 different approaches. You can hit the receptor like Forte has done or you can hit the leg and like we have with. There's a couple of things that we consider strategically when we design molecules. We like to go after the ligand. It's clean. You hit the free ligand and the cytokine in the system. When you hit a receptor, you run the risk of creating some off-target complications doing that. So we just by strategy, do it a different way, but there's nothing wrong with either way. One other more subtle thing that you can do when you hit the ligand is you can measure target engagement. We measure the free anti-IL-15 level in the system. So that gives us a good idea of how much activity we are seeing at any 1 point over time. So we've shown the suppression of free IL-15 for out to 80 or 90 days on a single dose. That really drives evidence-based way of choosing your dose selection and schedule. That's why we are interrogating a dose given once every 3 months. It is a quarterly shot that we're developing as a subcutaneous shut. So there's just strategic differences. Whether 1 is better than the other? We don't know. I'm just very confident in our modeling and simulation of how we'll move forward with a simple to get subcutaneous shot every 3 months. So that -- those are the biggest differences I see. It's great to see the acquisition. I mean, it shows the value people are putting in these indications like vitiligo and celiac disease. I'm fairly confident these will be indications that grow just like we saw psoriasis growth, just like we saw atopic dermatitis. Once we get good treatments that are easy to give, they will be used and the market will increase. So that's your first answer. For, the positioning of ecopipane, right now, people go through those first behavioral treatments for Tourette disease, then they try off-label drugs and like glyphenesene and other treatments that aren't approved, but actually have some modest effect. They're not great, but they're well tolerated. Then they advance on to antipsychotics, which have activity, but the tolerability is poor, particularly in a pediatric population. So the differentiation, the thing we're bringing to the table at is a brand-new mode of action. It's a D1 antagonist. It's much more tolerable. We believe in our hands. It was very tolerable in the Phase III and Phase II studies. And we think that at first, they might not be first-line therapies, but over time, when people see this tolerability and the efficacy that it would probably be advanced over time. So that's how I see the order of entry and the value proposition that we have with. Richard Francis: Yes. And if I can add to that, Eric. I think the numbers back it up. As I said, there's 100,000 pediatric patients who suffer from Tourette syndrome, only 50% are treated. And I think that highlights why are they not treated. And I think it goes to that -- there isn't a product that gives efficacy and safety. And then that theory is further endorsed by the fact that only 20% to 30% remain on therapy. And once again, an assumption around that is I'm not sure parents want their children to be on antipsychotic long term or some of the other drugs don't work that effectively. So either way you look at it, I think where there's a big unmet medical need for an efficacious safe, well-tolerated product. And I combine that with the expertise we have in the U.S. with AUSTEDO, UZEDY and AJOVY to how to treat certain patient populations and our experience with psychiatrists and neurologist. And I think that's why we have a lot of excitement around how we can help these patients, these children with this very distressing condition. Operator: We now turn to Ash Verma with UBS. Ashwani Verma: Great. Can you talk about the TL1A new indication just for the fibronostics indication that you mentioned, what type of addressable market is that in terms of U.S. and European patients? And then for HS, what would be the development path and trial design look like? Is it typical Phase II, Phase III with a focus on high 50 as a primary end point? Richard Francis: Thanks for the question. I'll hand that 1 to Eric, you are having a busy day today. Eric Hughes: Yes. So thanks for the question. The 2 indications I'm very excited about these 2 indications. And just to review how we think about the indications with our partner, Sanofi, first, the scientific justification has to be there, the market opportunity, the possibility of regulatory success, and of course, the speed. Those are the 4 benchmarks we use when choosing it. So why then HS and fibrosinotic cronies. There's a lot of great science around the fact that TL1A is upregulated in these disease areas, the fact that Th1 and Th17 cells are involved, you need a drug like do we keep to that has potential effects on multiple different pathways. And then you add in the fact that there's a potential direct effect on fibrosis. All those things add up to the fact that HS is probably a very good indication going to, not to mention the fact that 15% of patients who have IBD also have HS. So there's a lot of science and reason to believe that this is a good treatment. HS is another market that's growing. You see this out there with the competition. It's a high unmet medical need. This will continue to grow. So the market opportunity is definitely there. I think we have a good chance on the probability of success, and it's something we can execute very quickly. Usually, these primary endpoints are around 16 weeks. You can -- that's how we'll approach it most likely. And at this point in the development, we'll do a traditional Phase IIb study that will drive then a Phase III program. So that's what the timelines are looking at for HS. Now, turning to fibrostynatic Crohn disease. This is another 1 I really think is a great idea. This is an area that's great unmet medically. There's no approved therapies for the indication of fibrostononic Crohn disease. And this is really 1 of the main drivers of the complications of Crohn's disease, where you have potential obstruction. You have hospitalizations. You have increased costs, increased symptomatology. So if you can have a drug that potentially not only blocks the inflammation, but then really starts to work on these majorly obstructive fibrotic indemitist lesions in patients with Crohn's disease, that's a major differentiator for a drug launching into IBD. So hopefully, someday, we're not just talking about turning off inflammation in Crohn's disease, we're talking about changing the structure and the major complications within the disease. So when I think about the opportunity here, it's not just scientific unlocking fibrosis, it's driving a better label, a broader opportunity for patients and a broader opportunity for the market for the company. So that's the thinking behind the 2 indications, I think that they're spot on. Richard Francis: I think we have time for 1 more question. Is that right? Operator: Our next question comes from Sneha with Barclays. Glen Santangelo: Yes. This is Glen Santangelo. I think you got the name wrong. But essentially, Elliot, I just had 2 quick questions for you, if I could. I mean essentially, last quarter, I think you talked about the Osteo inventory sort of issues. And I thought the expectation was that those inventory levels would come down a little bit this quarter, but it seems like that wasn't the case. And I think you suggested that those inventory levels remain sort of elevated. So how should we think about that in 3Q and 4Q within the guidance expectations that you laid out? And then secondly, I did want to ask about EBITDA. I mean given the strength in the innovative brands this quarter and how well you did on revenues and gross margin, you maintained the EBITDA guidance. And I was just kind of curious if there was anything different in terms of your expense outlook, that's kind of worth calling out given that you maintain that EBITDA guidance? Richard Francis: Glenn, Richard, thanks for the question. I'll start with the stat and then I'll hand to Eli for the EBITDA question. So with regard to this inventory, you're right, we had that inventory build in Q4 2025. And we're expecting to draw down. We saw some of that drawdown occur in the first half of the year, but not fully complete. And so we need to see the rest of that come down in the second half of the year and Q4. And then just to reiterate what I think we've also been saying is how will Q4 levels play out anyway, knowing that the IRA price effectuation comes in, in Q1 2026. And I think that sort of is something that we also are keeping in mind when we think about guidance in AUSTEDO. And then I go back to the fundamentals, is the TRx good? Yes. Is the milligram is growth good? Yes. Is our breadth and depth of prescribers good? Yes. So I think that gives us, obviously, confidence about where the product is heading, why we feel confident about $3 billion plus in peak sales. But just those are the dynamics as we manage through this inventory, both the early part of it from Q4 '25 and then understanding how that's going to play out in Q4 of this year. And then on the EBITDA, I'll hand that 1 to Eli. Eliyahu Kalif: Thanks for the question. Yes. So look, as I mentioned in our prepared remarks and you saw from the slide the 3 main products, AUSTEDO, AJOVY and UZEDY at the midpoint now moving to $150 million. But net-net-net, what you see on the top of our top line, you see a midpoint of EUR 75 million, and this is related to kind of an offset that we see due to some softness in generics, as I mentioned. All in all, it's very important to remember, like this is a really strong performance mainly when you think about the context on a tough prior year comp with removing $1.1 billion revenue and $700 million equivalent EBITDA from REVLIMID. Now, if you go to the range on the EBITDA that we said, and we need to understand that I mentioned that we're going to be at the higher range of the OpEx, around 28%, and this is related to some continuous investment that we are doing in order to make sure that our innovative portfolio in biosimilars are performing. And also we had slightly a bit on less, I will mention, and some other in-lines costs that we had in our first half and going to have in the second half. You saw the announcement on OCREVUS and small here, small there. So it's kind of a maybe a very small 20, 30 basis points on the total, if you look on annual revenue. But this is all dynamics related to investment related to supporting our innovative and biosimilars portfolio. Richard Francis: Thanks for the question, Glen. And I have realized actually -- we're actually going to take some more questions there. So 2 more questions. So next question. Operator: We now turn to Matt Dellatorre with Goldman Sachs. Matthew Dellatorre: Great. Maybe coming back to TL1A, -- it seems like you guys are leaning kind of fairly heavily into these fibrosis heavy diseases. So I guess maybe how far could you go in that direction in terms of additional fibrotic indications? Are you going to kind of see how these play out and then go from there? And then Eric, you touched on this briefly, but I guess, how should we think about in the sense of would this be primarily a differentiator on your CD label? Or could it be a separately indication different label? And then maybe just briefly touching on the commercial side. I know you guys are prepping for 2 major launches over the next 12 months with olanzapine and EcoPPAM. Maybe just walk us through launch preparations so far? And what you guys are just most focused on from an execution perspective for both of those launches? Richard Francis: I'll let Eric start with TL1A 22. Over to you, Eric. Eric Hughes: Yes. So thanks for the questions, Matt. And first, to start with the TL1A, the choice of HS and fibers Crohn's disease, first and foremost, they are inflammatory diseases with a major fibrotic component to it. So these are great ways to get into the field and show whether we're having a true effect. We still have to prove that TL1A has that antifibrotic effect. But these are great avenues to get in there and learn. Once we've shown that, yes, maybe we could in the future go to truly only antifibrotic or fibrotic diseases such as IPF or something like that. But right now, we need to prove the principle. And these are great indications because -- on the way to learning those things, we will show the great value in indications that have a high unmet medical need. Now, going on to the question of fibrostenotic Crohn's disease, and what is our for what those will do in the future? I believe and I hope to have that as a labeled indication someday if we show good results. So that's the intention of those. So that really could differentiate us within the space of inflammatory bowel disease. So that's the intention. And then the question about the launch of the ecopipane and our preparations, maybe, Richard, did you want to take that? Richard Francis: Yes. No. We do -- as you framed it, I had 2 major launches, we're very excited about. I think with regard to olanzapine, I think it's worth noting that we've been preparing for this launch for some time, thinking about how best to approach it, but that preparation has really been high quality, not just because of the team's thinking because we're out in the market every day, understanding the physicians, the patients, the payers, the intricacies of this market. And so the team has put a huge amount of effort into preparing for this, which is why we are very optimistic and enthusiastic about our ability to really help these patients who need a long-acting therapy for these severe schizophrenia patients. So I think very confident and looking forward to seeing that launch. With regard to icopipane, based on the time of the FDA, this will probably could come out in the later part of Q2 next year. So once again, the asset has been transacted. We have it. We've been working and thinking about this for some time when we got close to the transaction. And we think this falls into our wheelhouse again. It's a rare disease, undertreated patient population, how do we get these patients motivated to seek therapy, how do we educate the physicians on a new therapy. This probably sounds very much like the things we've been saying around AUSTEDO because it is. And so that capability and that knowledge will leverage significantly. Obviously, putting the resources in place and getting the right people in place, we're very good at that. The unmet need is significant. So very excited about that. And I think the timing actually works out, these are over a year apart. And we've got to get used to this because as I said in my remarks, we'll be launching a new product every year. So this is a muscle that we've been building. We're enthusiastic about it. We're not in all of it. We're leaning into it. And so I think you'll see an excellent launch of. But obviously, we'll give you more update as we get closer to that. So thanks for your questions, Matt. Next question, I think is this last question? This is our last question. So who is it. Operator: Our next question comes from Chris Schott with JPMorgan. Unknown Analyst: Just this is a Catarina on for Chris. Just 2 very quick ones. So first, just on AJOVY guidance for the year is coming up nicely. Just how much of this is volume versus price? And any other kind of color you can provide in terms of the trends you're seeing for that product? And then just on Europe very quickly, coming in a little lighter than expected. Just again, anything to call out there? And how should we think about results in the second half for Europe? Richard Francis: Thanks for your question. So on a go, we're very pleased with the performance of this. And as I said, this is across all markets. So we've got good growth in international, good growth in Europe and good growth in the U.S. As I highlighted in my remarks, in the U.S., there is some favorability on the contracting and what we've done there on gross to net, but also market share gains in the U.S. We've also got market share gains in Europe and in international markets. And it's important to note that we are growing above the market in all of our regions. So that, I think, gives us an underlying good trajectory across all regions, but some good work down. I always remind people, when we started this journey with pivot to growth, AJOVY had been forgotten about. And now we're talking $1 billion asset. I think that's credit to the teams across all 3 of the regions that they've been able to do that. Now, you also asked a question around Europe and the softness in Europe. And I think this goes back to something I mentioned also is we don't have as many high-value launches as we had last year. We also had a very low cough and cold season, and we have a particularly significant portfolio in cough and cold, so that impacted us. On the positive side, we are launching more biosimilars. They've only just started, so we haven't really seen the traction of those. But we have more and more to come into Europe, which is a very attractive biosimilar market and is 1 that I've been disappointed that we haven't been in. But we've done a lot of work on this portfolio, and we're bringing more and more biosimilar to the market almost year-on-year. As I said, we have 14 more to launch, and we're going to consistently add more to that portfolio, and we'll end up with a portfolio mid-30s, close to 40%. That's our ambition. So hopefully, that answers your questions, Katherine, but thanks for the questions. And then do we have 1 more, a bit confused? No, we don't have any more. So thank you, everybody, for your time and attention today. Thanks for the questions, and thank you, as always, for the interest in Teva. Operator: Ladies and gentlemen, today's call has now concluded. We'd like to thank you for your participation. You may now disconnect your lines. Before you buy stock in Teva Pharmaceutical Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Teva Pharmaceutical Industries wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Teva (TEVA) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Teva Pharmaceutical Industries Limited TEVA reported second-quarter 2026 adjusted earnings of 2 cents per share, which missed the Zacks Consensus Estimate of 8 cents. Adjusted earnings declined 97% year over year due to higher acquisition costs. Adjusted earnings included an impact of a loss of 61 cents per share, related to the acquisition of Emalex Biosciences. Revenues for the second quarter were $4.14 billion, which marginally beat the Zacks Consensus Estimate of $4.10 billion. Total revenues decreased 1% from the year-ago quarter on a reported basis and 3% on a constant currency basis due to lower generic product revenues The company’s branded drugs Austedo, Ajovy and Uzedy witnessed strong momentum in the quarter. Sales in the United States segment were $1.70 billion, declining 5% year over year, mainly due to weaker sales of generic products notably lenalidomide capsules (generic Revlimid) in the United States, partly offset by higher revenues from key innovative products, notably Austedo. The segment’s sales beat the Zacks Consensus Estimate of $1.65 billion. Generic/biosimilar product revenues were down 31% year over year to $660 million in the United States, mainly due to lower revenues from lenalidomide capsules as a result of increased generic competition in the United States, partially offset by higher revenues from Teva’s portfolio of biosimilar products. The figure missed the Zacks Consensus Estimate of $720 million. Huntington's disease drug Austedo recorded sales of $676 million in the United States, up 37% year over year. Sales were mainly driven by volume growth as prescription trends continued to grow. Austedo sales beat the Zacks Consensus Estimate of $576 million. Ajovy recorded sales of $116 million in the quarter, up 83% year over year, driven by a reduction in sales allowance as well as volume growth. Ajovy sales surpassed the Zacks Consensus Estimate of $81 million. Uzedy (risperidone), a long-acting subcutaneous atypical antipsychotic injection for the treatment of schizophrenia, generated sales of $77 million in the second quarter, up 43% year over year, mainly driven by volume growth. Uzedy sales surpassed the Zacks Consensus Estimate of $71 million. Copaxone recorded sales of $61 million in the United States, down 2% year over year, mainly due to lower volumes. Copaxone sales, however, beat the Zacks Consensus Estimate of $59 million. The Europe segment recorded revenues of $1.26 billion, down 3% year over year on a reported basis. Sales declined 8% on a constant currency basis, mainly due to lower revenues from generic products and lower proceeds from the sale of certain product rights. Teva launched Austedo in European markets earlier this year. Europe revenues missed the Zacks Consensus Estimate of $1.36 billion. The International Markets segment recorded revenues of $550 million, up 11% year over year on a reported basis and 7% in constant currency terms. The increase was due to higher revenues from Ajovy and Austedo sales, primarily in China. International Markets revenues beat the Zacks Consensus Estimate of $537 million. The Other segment (comprising the sales of active pharmaceutical ingredients to third parties and certain contract manufacturing services) recorded revenues of $627 million, up 5% year over year on both a reported basis and a constant currency basis. Adjusted gross margin was 55.4% in the quarter, up 80 basis points (bps) year over year. The rise was mainly driven by higher Austedo and Ajovy revenues, partially offset by lower revenues from generic products in the United States segment. Adjusted research & development expenses increased 298% year over year to $970 million, reflecting higher costs related to the acquisition of Emalex Biosciences. Selling and marketing (S&M) expenditure increased 10% year over year to $717 million. General and administrative expenses increased 4% from the prior-year level to $317 million. Adjusted operating income declined to $375 million from $1.13 billion in the year-ago quarter. Adjusted operating margin contracted to 9% from 27.1%, mainly due to higher research and development expenses related to the acquisition of Emalex Biosciences. Teva expects an adjusted operating margin of 30% by 2027 to be achieved through cost savings and the continued growth of its branded drugs. Teva raised its 2026 revenue outlook to $16.50-$16.85 billion from the previous range of $16.40-$16.80 billion. Despite the mixed earnings results, shares of Teva were up 9.6% yesterday, driven by the company's raised 2026 revenue outlook for its innovative portfolio, particularly Austedo, Ajovy and Uzedy. Year to date, shares of Teva have risen 11.2% against the industry’s 1.2% decline. Image Source: Zacks Investment Research The company increased its Austedo revenue forecast to $2.45-$2.60 billion from $2.40-$2.55 billion. Ajovy guidance was raised to $850-$870 million from $750-$790 million, while Uzedy guidance was increased to $270-$290 million from $250-$280 million. Teva expects combined 2026 revenues of approximately $3.7 billion for Austedo, Ajovy and Uzedy, reflecting around 17% yearly growth at the midpoint. The company maintained adjusted EPS guidance of $1.91-$2.11 for 2026. Teva continues to expect adjusted operating income in the band of $3.8-$4 billion in 2026. The company also maintained its adjusted EBITDA guidance in the range of $4.23-$4.53 billion. Free cash flow is projected to be in the range of $2-$2.4 billion, and capital expenditures are expected to be $500 million in 2026, both unchanged from the previous expectation. Teva completed the acquisition of Emalex Biosciences in June 2026. The transaction added ecopipam, a first-in-class investigational treatment for pediatric Tourette syndrome, to its neuroscience pipeline. The acquisition strengthened Teva’s innovative medicines pipeline. In June, Teva submitted a new drug application (NDA) to the FDA seeking approval for ecopipam for treating pediatric Tourette syndrome. The company expects the potential launch of ecopipam in the first half of 2027, subject to approval. Teva also remains on track for the anticipated launch of olanzapine long-acting injectable in the United States in the fourth quarter of 2026 upon potential approval from the FDA. Along with the earnings release, Teva announced that it will replace its American Depositary Shares (ADSs) with its regular ordinary shares on the New York Stock Exchange (NYSE), which will commence trading on the NYSE from Sept. 14, 2026. By replacing ADSs with ordinary shares listed directly on the NYSE, Teva aims to make its stock more accessible to investors, which could increase investor interest and trading activity as well as reduce the company's financing costs over time. Teva Pharmaceutical Industries Ltd. price-consensus-eps-surprise-chart | Teva Pharmaceutical Industries Ltd. Quote Teva currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY, Kiniksa Pharmaceuticals KNSA and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have risen from $3.20 to $3.30, while estimates for 2027 have increased from $3.64 to $3.87 during the same time. HRMY shares have lost 4.2% year to date. Harmony Biosciences’ earnings missed estimates in each of the trailing four quarters, with the average negative surprise being 25.16%. Over the past 60 days, estimates for Kiniksa Pharmaceuticals’ 2026 earnings per share have risen from $1.24 to $1.39, while estimates for 2027 have increased from $1.70 to $2.12 during the same time. KNSA shares have soared 96.1% year to date. Kiniksa Pharmaceuticals’ earnings beat estimates in one of the trailing four quarters, met the same once and missed the same on the remaining two occasions, with the average negative surprise being 5.42%. Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 159.7% year to date. Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report Liquidia Corporation (LQDA) : Free Stock Analysis Report Kiniksa Pharmaceuticals International, plc (KNSA) : Free Stock Analysis Report Harmony Biosciences Holdings, Inc. (HRMY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research