Teva shares soar on strong third-quarter performance
Revenue climbs 3% to $4.5 billion, exceeding analysts’ expectations.
Teva reported strong third-quarter results, surpassing revenue expectations and raising its forecast for Austedo. The pharmaceutical company posted revenue of $4.5 billion, exceeding expectations of $4.3 billion and marking a 3% increase compared to the same period last year. Teva shares surged by over 10% following the news.
The growth was driven primarily by sales of its brand-name drugs in the U.S., with brand-name revenues rising 33% to $830 million in the third quarter. This performance contributed to improved profitability, with net income reaching $0.78 per share, also above analysts’ forecasts.
Austedo, Teva's leading drug for movement disorders linked to neurological diseases, generated $618 million in revenue during the quarter, a 38% increase compared to the same quarter last year. Reflecting this strong performance, Teva raised its annual revenue forecast for Austedo by $50-100 million, now expecting total revenue of $2-2.1 billion.
Other brand-name drugs also contributed to growth. Ajovy generated $168 million in revenue, up 19%, and is projected to deliver $630-640 million in annual revenue. Uzedy, the company’s newest treatment for schizophrenia, posted $43 million in revenue in the quarter, with expected 2025 revenue of $190-200 million in its first full year on the market.
Richard Francis, Teva’s President and CEO, commented on the results: “Our innovative portfolio driving the 11th consecutive quarter of growth in the third quarter reflects the accelerating momentum of our transformation and the strength of our innovation-led Pivot to Growth strategy. Our key growth drivers—particularly our innovative medicines—delivered a 33% increase in local currency, underscoring their impact on both patient outcomes and our financial performance. As we continue executing our strategy, we remain firmly on track to reach our 30% non-GAAP operating profit margin by 2027 and around $700 million of net savings target.”
The company’s recent performance follows a period of restructuring, including a workforce reduction of 8% over the last two quarters, aimed at streamlining operations and enhancing efficiency.
On the operating side, Teva reported a profit of $882 million, compared to a loss of $51 million in the same quarter last year, which had included legal expenses and write-offs.
The operating profit margin reached 19.7% in the third quarter. Excluding one-time items, operating profit rose to $1.2 billion, representing 28.9% of revenue.
Teva slightly updated its forecast following improved expectations for Austedo, projecting total revenue in 2025 of $16.8–17 billion. Operating profit, excluding one-time items, is expected to reach $4.4–4.6 billion, while cash flow is projected at $1.6–1.9 billion.
On less positive news, Teva reported that exclusive talks with a potential buyer for its TAPI active ingredients division have ended without results. The company plans to resume its search for a buyer, a process that has been ongoing for more than a year, after CEO Richard Francis decided to pursue the sale of the division.
