Bloomberg Talks Teva CEO Richard Francis Talks Tariffs, Generic Drugs Market
Jul 30, 2025
Teva Pharmaceutical's recent financial results reveal a mixed performance amid strategic shifts. CEO Richard Francis discusses the potential effects of new U.S.-EU tariffs on drug pricing and how they complicate the industry landscape. The conversation also touches on the need for clearer governmental guidance. Innovations in biopharma come to light, particularly regarding pricing strategies and potential divestitures. Lastly, the role of artificial intelligence in improving operational efficiencies takes center stage.
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Teva's Supply Chain Strength
- Teva has limited exposure to China and India, mitigating tariff risks there.
- Its U.S.-based supply chain and manufacturing sites provide resilience against tariffs.
Pricing Flexibility Differs by Business
- Teva cannot raise prices in its innovative business due to the system setup.
- In generics, price adjustments depend on contracts and competitor pricing moves.
Teva's Unique Position on MFN Pricing
- Teva's innovative portfolio is young and mostly U.S.-centric, limiting immediate impact of Most Favored Nation pricing.
- Net drug prices in the U.S. and Europe may be closer than perceived due to PBM effects.