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Teva Stock Trading Above 200- & 50-Day SMA for 2 Months: How to Play
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Key Takeaways
TEVA has traded above its 50- and 200-day SMAs since October, supported by a golden cross signal.
Growth from Austedo, Ajovy and Uzedy and a strengthening biosimilar pipeline are boosting TEVA's outlook.
Soft generics trends and competition persist even as valuation and pipeline progress support staying invested.
Teva Pharmaceutical Industries Limited’s (TEVA - Free Report) stock has been trading above its 50-day and 200-day simple moving averages (SMAs) since the end of October. It achieved the golden cross in mid-September. The 50-day moving average is a short-term indicator, while the 200-day moving average is a longer-term indicator. When the 50-day moving average crosses above the 200-day moving average on a stock’s price chart, it's known as a "golden cross," a bullish signal suggesting potential for a prolonged upward trend. The crossover indicates that the stock's recent price performance has been stronger than its longer-term performance.
The 50-day SMA has been above the 200-day SMA since it achieved the golden cross, a positive sign for the stock’s future gains. A key driver of Teva’s bullish stock performance was the announcement made in early November that it had concluded the Inflation Reduction Act (IRA) pricing negotiations for Teva’s key branded drug, Austedo. The drug was selected by CMS for Medicare price setting, beginning in 2027. Teva said the outcome of the negotiations went as expected and raised its 2025 Austedo sales expectations. It also maintained its 2027 revenue target of more than $2.5 billion for Austedo sales and expects sales to exceed $3 billion by 2030.
Image Source: Zacks Investment Research
Let’s understand Teva’s strengths and weaknesses to better analyze how to play the stock after it reaches this important support level.
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 33% year over year to $800 million in the third quarter.
Austedo sales rose 33% in the first nine months of 2025. 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.
Though IRA pricing negotiations have concluded, CMS is expected to formally announce the agreement on a maximum fair price for Austedo in November 2025. The newly established U.S. government pricing will take effect on Jan. 1, 2027, and will apply to eligible Medicare beneficiaries.
Ajovy sales rose 27% in the first nine months of 2025. 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 nine months of 2025, Uzedy’s sales rose 82% to $136 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 recently initiated phase III studies on duvakitug for both UC and CD indications. The company expects to file a new drug application to seek approval for olanzapine before the year ends.
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, AstraZeneca’s Soliris (Epysqli) and Novo Nordisk’s Saxenda.
Teva has a decent pipeline of biosimilars, with some being developed in partnership with Alvotech. The pipeline comprises high-value complex generics like Simlandi and Selarsdi, the first two biosimilars to be launched in the United States under the Teva and Alvotech strategic partnership, which includes seven biosimilars.
Biosimilar versions of Amgen’s Prolia and Xgeva were approved in the EU in November 2025 and are under review in the United States. Biosimilar versions of Regeneron’s Eylea and J&J’s Simponi, which are in collaboration with Alvotech, are under review in the United States. A biosimilar of Xolair is in late-stage development.
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 nine months of 2025, U.S. generics/biosimilars sales were almost flat as a strong biosimilars performance was offset by lower revenues from the generic versions of Bristol-Myers’ (BMY - Free Report) Revlimid and Victoza. However, Teva expects its global generics business to improve going forward, driven by 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 2025 and expects five additional launches by 2027.
TEVA’s Various Headwinds in 2025
Teva’s generics business has been slightly soft in 2025 due to tough year-over-year comparables, increased competitive pressure and softness in certain markets. In International Markets, generics sales are being hurt by the divestment of Teva’s business venture in Japan. In 2025, Teva expects its generics business to be flat to up in low single digits in constant currency terms.
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. Moreover, the competitive environment for Truxima, Teva's biosimilar of Roche's Rituxan, is becoming more challenging, given other Rituxan biosimilar launches by Pfizer and Amgen.
TEVA’s Price, Valuation & Estimate Discussion
Teva stock has risen 28.6% so far this year compared with the industry’s 28.2% increase.
TEVA Stock Outperforms 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 10.39 on a forward 12-month basis, lower than 14.37 for the industry. However, the stock is trading above its 5-year mean of 4.29.
TEVA Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings has risen from $2.55 per share to $2.61 for 2025 and has been stable at $2.73 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 slightly 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, attractive 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 Trading Above 200- & 50-Day SMA for 2 Months: How to Play
Key Takeaways
Teva Pharmaceutical Industries Limited’s (TEVA - Free Report) stock has been trading above its 50-day and 200-day simple moving averages (SMAs) since the end of October. It achieved the golden cross in mid-September. The 50-day moving average is a short-term indicator, while the 200-day moving average is a longer-term indicator. When the 50-day moving average crosses above the 200-day moving average on a stock’s price chart, it's known as a "golden cross," a bullish signal suggesting potential for a prolonged upward trend. The crossover indicates that the stock's recent price performance has been stronger than its longer-term performance.
The 50-day SMA has been above the 200-day SMA since it achieved the golden cross, a positive sign for the stock’s future gains. A key driver of Teva’s bullish stock performance was the announcement made in early November that it had concluded the Inflation Reduction Act (IRA) pricing negotiations for Teva’s key branded drug, Austedo. The drug was selected by CMS for Medicare price setting, beginning in 2027. Teva said the outcome of the negotiations went as expected and raised its 2025 Austedo sales expectations. It also maintained its 2027 revenue target of more than $2.5 billion for Austedo sales and expects sales to exceed $3 billion by 2030.
Let’s understand Teva’s strengths and weaknesses to better analyze how to play the stock after it reaches this important support level.
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 33% year over year to $800 million in the third quarter.
Austedo sales rose 33% in the first nine months of 2025. 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.
Though IRA pricing negotiations have concluded, CMS is expected to formally announce the agreement on a maximum fair price for Austedo in November 2025. The newly established U.S. government pricing will take effect on Jan. 1, 2027, and will apply to eligible Medicare beneficiaries.
Ajovy sales rose 27% in the first nine months of 2025. 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 nine months of 2025, Uzedy’s sales rose 82% to $136 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 recently initiated phase III studies on duvakitug for both UC and CD indications. The company expects to file a new drug application to seek approval for olanzapine before the year ends.
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, AstraZeneca’s Soliris (Epysqli) and Novo Nordisk’s Saxenda.
Teva has a decent pipeline of biosimilars, with some being developed in partnership with Alvotech. The pipeline comprises high-value complex generics like Simlandi and Selarsdi, the first two biosimilars to be launched in the United States under the Teva and Alvotech strategic partnership, which includes seven biosimilars.
Biosimilar versions of Amgen’s Prolia and Xgeva were approved in the EU in November 2025 and are under review in the United States. Biosimilar versions of Regeneron’s Eylea and J&J’s Simponi, which are in collaboration with Alvotech, are under review in the United States. A biosimilar of Xolair is in late-stage development.
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 nine months of 2025, U.S. generics/biosimilars sales were almost flat as a strong biosimilars performance was offset by lower revenues from the generic versions of Bristol-Myers’ (BMY - Free Report) Revlimid and Victoza. However, Teva expects its global generics business to improve going forward, driven by 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 2025 and expects five additional launches by 2027.
TEVA’s Various Headwinds in 2025
Teva’s generics business has been slightly soft in 2025 due to tough year-over-year comparables, increased competitive pressure and softness in certain markets. In International Markets, generics sales are being hurt by the divestment of Teva’s business venture in Japan. In 2025, Teva expects its generics business to be flat to up in low single digits in constant currency terms.
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. Moreover, the competitive environment for Truxima, Teva's biosimilar of Roche's Rituxan, is becoming more challenging, given other Rituxan biosimilar launches by Pfizer and Amgen.
TEVA’s Price, Valuation & Estimate Discussion
Teva stock has risen 28.6% so far this year compared with the industry’s 28.2% increase.
TEVA Stock Outperforms 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 10.39 on a forward 12-month basis, lower than 14.37 for the industry. However, the stock is trading above its 5-year mean of 4.29.
TEVA Stock Valuation
The Zacks Consensus Estimate for earnings has risen from $2.55 per share to $2.61 for 2025 and has been stable at $2.73 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 slightly 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, attractive 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.