Teva, after third straight year of growth, expects downturn in 2026

 Under CEO Richard Francis’ “Pivot to Growth” strategy, Teva Pharmaceutical Industries has undergone a significant transformation from the generic-focused drugmaker it once was. Although it now has a third consecutive year of sales growth under its belt, the company’s 2026 revenue guidance shows that the streak will likely come to an end.

After collecting $17.3 billion in 2025, Teva is expecting 2026 revenues of between $16.4 and $16.8 billion, it said in its Wednesday earnings presentation (PDF). 

The 2025 figure marks a jump from $16.5 billion in 2024 and $15.8 billion in 2023. The company's annual revenues bottomed out at $14.9 billion in 2022 before its recent return to growth.

One bright spot in 2026 looks to be tardive dyskinesia treatment Austedo. The drug, one of three core innovative brands for the company, is on track to reach between $2.4 billion and $2.5 billion this year after taking home $2.26 billion in 2025, the company said Wednesday. That would put it a year ahead of Teva's plan to pick up $2.5 billion from Austedo in 2027. 

Francis sees continued Austedo opportunities ahead, spotlighting the 85% of eligible patients who are not currently treated for the disease, he said on the company’s earnings conference call.

Austedo’s growth trajectory is a “huge feat,” Evercore ISI analyst Umer Raffat wrote in a note to clients, especially considering that many market watchers, including the analyst himself, were skeptical about the drug's potential to generate $2.5 billion in annual revenue when Francis first guided toward that figure years ago.

But Austedo is holding its own alongside Teva’s other innovative meds in migraine med Ajovy and long-acting schizophrenia med Uzedy. Together, the trio collected $1 billion in quarterly sales during the fourth quarter, marking a “true engine of sustainable growth,” Francis said in Teva’s earnings release.

Meanwhile, Teva’s innovative pipeline holds $10 billion in potential revenue opportunity over the long run, according to the company. Within that portfolio, the drugmaker’s olanzapine, a long-acting injectable for schizophrenia, has been submitted to the FDA. This addition is what Raffat considers the “most meaningful catalyst” for Teva’s story to come, he noted. 

Together with Uzedy, the company’s long-acting schizophrenia franchise could reach more than $2 billion in peak annual sales, according to Teva's figures.

Despite its focus on innovative sales, Teva has not left its roots in generics and biosimilars behind. Touting what it calls the “second-largest” biosimilar portfolio in the industry with the most products launched since 2020, the company is looking to launch 6 new biosimilars in 2026 and 2027, with 10 to come in 2028 and beyond, the company said. Altogether, these launches put Teva on track to double its biosimilar revenue from 2024 levels, the company has said.

“This biosimilar portfolio is coming through thick and fast,” Francis said, “and that’s going to really help us drive the generic business going forward, both in Europe and the U.S.”

Combining its strengths on the biosimilar side with gains in the innovative product sector was the premise of Francis’ initial “Pivot to Growth” plan, which the company debuted in 2023. Coming up on three years later, “I think we pivoted” into a biopharma company, Francis said on the call.

Given Teva's “impressive” organic growth, the company isn’t “desperate” for deals, Francis said. However, Francis noted that the number of companies approaching Teva for business opportunities has “significantly increased” over the last year to 18 months. This rise in interest could speak to Teva’s strengths as a partner with its demonstrated commercial capability, devoted "focus we give assets" and speed in the R&D department, Francis said on the call. 

https://www.fiercepharma.com/pharma/teva-third-year-growth-innovative-products-expects-downturn-2026