Bloomberg Businessweek Teva Surges After Push Into Branded Drugs Drives Sales Beat
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Nov 6, 2025 Richard Francis, the President and CEO of Teva Pharmaceuticals, dives into the company's impressive shift toward branded medications, highlighting a notable 33% growth in that sector. He discusses how this strategy, contrasted with a decline in generics, led to a quarterly revenue surprise of $4.48 billion. Richard also covers ongoing pricing negotiations for Austedo and the challenges faced in the active pharmaceutical ingredients sale process, providing insights into Teva's future trajectory in the biopharma landscape.
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Branded Portfolio Is Reshaping Margins
- Teva's branded (innovative) portfolio grew 33% and now exceeds $800 million in quarterly revenue.
- That shift is improving gross margins and driving investor excitement about Teva's transition to a biopharma company.
Estedo Deal Clears A Major Uncertainty
- Teva closed price negotiations for Austedo (Estedo) and reaffirmed its 2027 $2.5 billion revenue guidance.
- Management now expects peak sales for the drug above $3 billion, removing a key uncertainty for the stock.
Generics Is Cash Engine, Not Quarterly Focus
- Teva treats generics as a stable, large cash-generating business and models it on a multi-year CAGR (around 2%).
- The generics unit funds R&D and branded expansion rather than being the primary growth lever alone.