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TEVA Stock Up More Than 19% in a Month: Buy, Sell or Hold the Stock?
Read MoreHide Full Article
Key Takeaways
Teva's three innovative branded drugs, Austedo, Ajovy and Uzedy, are recording strong sales growth
Generics sales face U.S. competition and impact from the Japan divestment.
Teva guides 2025 generics growth to be flat to up in low single digits in constant currency.
Teva Pharmaceutical Industries Limited’s (TEVA - Free Report) shares have risen 19.4% in the past month. A key driver of the stock price increase was its mixed second-quarter results announced on July 30. Teva’s second-quarter results were mixed as it beat estimates for earnings but missed the same for sales. Sales declined 1% on a constant currency basis due to lower sales of its global generics business.
Despite the sales decline, what caught investors' attention was that its key three innovative branded drugs, Austedo, Ajovy and Uzedy, recorded strong sales growth, with the company also raising their sales expectations for the year. Investors seem impressed by Teva’s revenue shift toward its branded portfolio of drugs despite the softness in its generics sales this year.
Let's analyze Teva’s strengths and weaknesses in detail to understand how to play TEVA stock at present.
TEVA’s New Branded Drugs Driving Growth
The company is seeing continued market share growth of its newest branded drugs, Austedo, Ajovy and Uzedy. Collectively, sales of Austedo, Ajovy, and Uzedy rose 26% year over year in the second quarter.
Austedo sales rose 29% in the first half of 2025 to $891 million. Teva expects Austedo annual revenues to be more than $2.5 billion by 2027 and exceed $3 billion by 2030. The Austedo franchise got a boost from the launch of Austedo XR, a new once-daily formulation of Austedo. Teva expects to launch Austedo in European markets in 2026.
Ajovy sales rose 34% in the first half of 2025 to $117 million. Though Teva is seeing slightly slower growth of Ajovy in the U.S. market, it expects sales to benefit from continued patient growth and launches in additional countries in Europe and international markets.
Uzedy (risperidone) extended-release injectable suspension, a long-acting subcutaneous atypical antipsychotic injection for the treatment of schizophrenia in adults, was launched in May 2023 in the United States. In 2024, Teva recorded Uzedy sales of approximately $117 million, more than its target of approximately $100 million. In the first half of 2025, Uzedy’s sales rose 134% to $93 million, with total sales expected to be between $190 million and $200 million in 2025.
The company has also made decent progress with its branded pipeline, which includes olanzapine, a long-acting subcutaneous injectable (LAI) for treating schizophrenia and duvakitug, its anti-TL1A therapy for inflammatory bowel diseases (IBD), ulcerative colitis (UC) and Crohn’s disease (CD). Teva has partnered with Sanofi (SNY - Free Report) for duvakitug to maximize the value of the asset. Teva and Sanofi will equally share the development costs globally. Sanofi plans to advance duvakitug into phase III trials for both UC and CD in the fourth quarter of 2025. The company expects to file a new drug application to seek approval for olanzapine in the fourth quarter of 2025.
Teva anticipates generating more than $5 billion in revenues from its branded products by 2030.
TEVA’s Strengthening Generics and Biosimilar Pipeline
Over the past few quarters, Teva has successfully launched several biosimilars and other high-value complex generics, including Novo Nordisk’s (NVO - Free Report) Victoza, Roche’s cancer drugs Rituxan (Truxima) and Herceptin (Herzuma), AbbVie’s Humira (Simlandi), J&J’s Stelara (Selarsdi), Novartis’ Sandostatin LAR and AstraZeneca’s Soliris (Epysqli).
Teva has a decent pipeline of biosimilars, with some being developed in partnership with Alvotech, including the already launched high-value complex generics like Simlandi and Selarsdi.
Teva’s U.S. generics/biosimilars business looks stable now, despite headwinds, much more than it has been in years. Teva’s U.S. generics/biosimilars business rose 15% in the United States in 2024, driven by new product launches. In the first half of 2025, U.S. generics/biosimilars sales were almost flat as a strong biosimilars performance was offset by lower revenues from generic version of Bristol-Myers’ (BMY - Free Report) Revlimid and generic version of NVO’s Victoza. However, Teva expects its global generics business to improve going forward, driven by 15 complex generic launches in the United States, several generic launches in ex-U.S. markets, and new biosimilar launches.
The company aims to double its global biosimilars sales by 2027. Teva launched three biosimilars, Simlandi, Selarsdi and Epysqli in the United States in the first quarter and expects five additional launches from the second half of 2025 to 2027.
TEVA’s Various Headwinds in 2025
Teva’s generics business has been soft in 2025 due to lower revenues from generic products in the United States and International Markets. In the United States, generic sales in the first half were hurt due to tough year-over-year comparable and increased competitive pressure. Meanwhile, in the International Markets, generics sales were hurt by the divestment of Teva’s business venture in Japan. In 2025, Teva expects its generics business growth to be flat to up in low single digits in constant currency terms. Due to the softness in generics, Teva expects to be around or slightly below the midpoint of its total revenue guidance of $16.8-$17.2 billion.
The company also faces competitive pressure for some of its key branded drugs. It also has a high debt load and faces some price-fixing charges. The company may face a revenue cliff for lenalidomide capsules (the generic version of Bristol-Myers’ Revlimid) in 2026, as well as headwinds in 2027 related to the IRA Medicare Part D negotiation for Austedo. Austedo and Austedo XR have been selected by CMS for Medicare price setting beginning in 2027.
TEVA’s Price, Valuation & Estimate Discussion
Teva stock has lost 14.8% so far this year compared with the industry’s 3.2% decline.
TEVA Stock Underperforms Industry YTD
Image Source: Zacks Investment Research
The stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the company shares currently trade at 7.11 on a forward 12-month basis, lower than 11.26 for the industry. However, the stock is trading above its 5-year mean of 4.12.
TEVA Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings has declined from $2.51 per share to $2.50 for 2025 and from $2.72 to $2.71 for 2026 over the past 60 days.
TEVA’s Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in Teva’s Stock
Despite the various headwinds discussed above, Teva’s newer drugs, Austedo, Uzedy and Ajovy are reviving top-line growth. Although sales of generic drugs have been soft in 2025, the company is experiencing strong performance from biosimilars, driven by growth from both existing and new products.
With the nationwide settlement of the costly opioid litigations, new product launches, stability in the generics segment with contributions from biosimilars, and a robust pipeline of biosimilars and branded products, the path for Teva’s long-term growth is becoming clearer. The company is saving costs and improving margins through the optimization of operations for efficiency while also lowering the debt on its balance sheet. Teva expects an adjusted operating margin of 30% by 2027 through cost savings and the continued growth of its branded drugs.
In the past few months, Fitch, Moody's and S&P have upgraded their respective credit outlook for Teva, reflecting improved growth prospects.
TEVA’s recent stock price appreciation, cheap valuation, improving branded and biosimilar pipeline and the prospect of growth in sales and profits are good enough reasons to stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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TEVA Stock Up More Than 19% in a Month: Buy, Sell or Hold the Stock?
Key Takeaways
Teva Pharmaceutical Industries Limited’s (TEVA - Free Report) shares have risen 19.4% in the past month. A key driver of the stock price increase was its mixed second-quarter results announced on July 30. Teva’s second-quarter results were mixed as it beat estimates for earnings but missed the same for sales. Sales declined 1% on a constant currency basis due to lower sales of its global generics business.
Despite the sales decline, what caught investors' attention was that its key three innovative branded drugs, Austedo, Ajovy and Uzedy, recorded strong sales growth, with the company also raising their sales expectations for the year. Investors seem impressed by Teva’s revenue shift toward its branded portfolio of drugs despite the softness in its generics sales this year.
Let's analyze Teva’s strengths and weaknesses in detail to understand how to play TEVA stock at present.
TEVA’s New Branded Drugs Driving Growth
The company is seeing continued market share growth of its newest branded drugs, Austedo, Ajovy and Uzedy. Collectively, sales of Austedo, Ajovy, and Uzedy rose 26% year over year in the second quarter.
Austedo sales rose 29% in the first half of 2025 to $891 million. Teva expects Austedo annual revenues to be more than $2.5 billion by 2027 and exceed $3 billion by 2030. The Austedo franchise got a boost from the launch of Austedo XR, a new once-daily formulation of Austedo. Teva expects to launch Austedo in European markets in 2026.
Ajovy sales rose 34% in the first half of 2025 to $117 million. Though Teva is seeing slightly slower growth of Ajovy in the U.S. market, it expects sales to benefit from continued patient growth and launches in additional countries in Europe and international markets.
Uzedy (risperidone) extended-release injectable suspension, a long-acting subcutaneous atypical antipsychotic injection for the treatment of schizophrenia in adults, was launched in May 2023 in the United States. In 2024, Teva recorded Uzedy sales of approximately $117 million, more than its target of approximately $100 million. In the first half of 2025, Uzedy’s sales rose 134% to $93 million, with total sales expected to be between $190 million and $200 million in 2025.
The company has also made decent progress with its branded pipeline, which includes olanzapine, a long-acting subcutaneous injectable (LAI) for treating schizophrenia and duvakitug, its anti-TL1A therapy for inflammatory bowel diseases (IBD), ulcerative colitis (UC) and Crohn’s disease (CD). Teva has partnered with Sanofi (SNY - Free Report) for duvakitug to maximize the value of the asset. Teva and Sanofi will equally share the development costs globally. Sanofi plans to advance duvakitug into phase III trials for both UC and CD in the fourth quarter of 2025. The company expects to file a new drug application to seek approval for olanzapine in the fourth quarter of 2025.
Teva anticipates generating more than $5 billion in revenues from its branded products by 2030.
TEVA’s Strengthening Generics and Biosimilar Pipeline
Over the past few quarters, Teva has successfully launched several biosimilars and other high-value complex generics, including Novo Nordisk’s (NVO - Free Report) Victoza, Roche’s cancer drugs Rituxan (Truxima) and Herceptin (Herzuma), AbbVie’s Humira (Simlandi), J&J’s Stelara (Selarsdi), Novartis’ Sandostatin LAR and AstraZeneca’s Soliris (Epysqli).
Teva has a decent pipeline of biosimilars, with some being developed in partnership with Alvotech, including the already launched high-value complex generics like Simlandi and Selarsdi.
Teva’s U.S. generics/biosimilars business looks stable now, despite headwinds, much more than it has been in years. Teva’s U.S. generics/biosimilars business rose 15% in the United States in 2024, driven by new product launches. In the first half of 2025, U.S. generics/biosimilars sales were almost flat as a strong biosimilars performance was offset by lower revenues from generic version of Bristol-Myers’ (BMY - Free Report) Revlimid and generic version of NVO’s Victoza. However, Teva expects its global generics business to improve going forward, driven by 15 complex generic launches in the United States, several generic launches in ex-U.S. markets, and new biosimilar launches.
The company aims to double its global biosimilars sales by 2027. Teva launched three biosimilars, Simlandi, Selarsdi and Epysqli in the United States in the first quarter and expects five additional launches from the second half of 2025 to 2027.
TEVA’s Various Headwinds in 2025
Teva’s generics business has been soft in 2025 due to lower revenues from generic products in the United States and International Markets. In the United States, generic sales in the first half were hurt due to tough year-over-year comparable and increased competitive pressure. Meanwhile, in the International Markets, generics sales were hurt by the divestment of Teva’s business venture in Japan. In 2025, Teva expects its generics business growth to be flat to up in low single digits in constant currency terms. Due to the softness in generics, Teva expects to be around or slightly below the midpoint of its total revenue guidance of $16.8-$17.2 billion.
The company also faces competitive pressure for some of its key branded drugs. It also has a high debt load and faces some price-fixing charges. The company may face a revenue cliff for lenalidomide capsules (the generic version of Bristol-Myers’ Revlimid) in 2026, as well as headwinds in 2027 related to the IRA Medicare Part D negotiation for Austedo. Austedo and Austedo XR have been selected by CMS for Medicare price setting beginning in 2027.
TEVA’s Price, Valuation & Estimate Discussion
Teva stock has lost 14.8% so far this year compared with the industry’s 3.2% decline.
TEVA Stock Underperforms Industry YTD
The stock is trading at an attractive valuation relative to the industry. Going by the price/earnings ratio, the company shares currently trade at 7.11 on a forward 12-month basis, lower than 11.26 for the industry. However, the stock is trading above its 5-year mean of 4.12.
TEVA Stock Valuation
The Zacks Consensus Estimate for earnings has declined from $2.51 per share to $2.50 for 2025 and from $2.72 to $2.71 for 2026 over the past 60 days.
TEVA’s Estimate Movement
Stay Invested in Teva’s Stock
Despite the various headwinds discussed above, Teva’s newer drugs, Austedo, Uzedy and Ajovy are reviving top-line growth. Although sales of generic drugs have been soft in 2025, the company is experiencing strong performance from biosimilars, driven by growth from both existing and new products.
With the nationwide settlement of the costly opioid litigations, new product launches, stability in the generics segment with contributions from biosimilars, and a robust pipeline of biosimilars and branded products, the path for Teva’s long-term growth is becoming clearer. The company is saving costs and improving margins through the optimization of operations for efficiency while also lowering the debt on its balance sheet. Teva expects an adjusted operating margin of 30% by 2027 through cost savings and the continued growth of its branded drugs.
In the past few months, Fitch, Moody's and S&P have upgraded their respective credit outlook for Teva, reflecting improved growth prospects.
TEVA’s recent stock price appreciation, cheap valuation, improving branded and biosimilar pipeline and the prospect of growth in sales and profits are good enough reasons to stay invested in this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.