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Teva's Branded Drugs Take Center Stage in Its Growth Strategy
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Key Takeaways
Teva expects branded products to reach 22% of revenues in 2026, up from 9% in 2022.
Teva expects Austedo revenues of $2.45-$2.60 billion in 2026, with growth aided by Austedo XR.
Teva plans five regulatory submissions through 2030, including olanzapine, ecopipam and duvakitug.
Teva Pharmaceutical Industries Limited’s (TEVA - Free Report) business was heavily dependent on generic medicines for decades. That model provided scale but also exposed the company to intense price competition, product commoditization and periodic revenue declines when additional generic competitors entered the market.
Under its "Pivot to Growth" strategy, launched in 2023, Teva is strengthening the branded drugs segment by investing in research and development, pursuing targeted acquisitions and partnerships, and expanding its commercial capabilities in specialty therapeutic areas. This shift is not about abandoning generics; rather, Teva is trying to use the cash flow and commercial infrastructure of its generics business to fund a growing branded-drug franchise. Rather than attempting to compete across numerous disease categories, Teva has concentrated on areas where it possesses scientific expertise and can establish meaningful market positions, including neuroscience, immunology and respiratory diseases.
The company is seeing continued market share growth of its newest branded drugs, Austedo, Ajovy and Uzedy. Collectively, sales of the three drugs rose 43% year over year to more than $1 billion in the second quarter. Teva expects their combined sales to reach approximately $3.7 billion in 2026, representing around 17% growth at the midpoint.
Austedo remains the largest contributor to the franchise, with global sales rising 40% year over year to $696 million in the second quarter. Teva expects Austedo revenues of $2.45-$2.60 billion in 2026, with the midpoint broadly matching its previous target of more than $2.5 billion by 2027. This could put the drug roughly a year ahead of schedule. The Austedo franchise got a boost from the launch of Austedo XR, a new once-daily formulation of Austedo. Teva launched Austedo in European markets in 2026, which should further contribute to growth. Teva expects Austedo revenues to exceed $3 billion by 2030.
Teva's second important growth product is Ajovy, a CGRP-targeting medicine for migraine prevention. Ajovy’s global revenues increased 56% on a constant-currency basis to $244 million in the second quarter. Teva expects Ajovy sales of $850-$870 million in 2026, and estimates peak global sales potential of approximately $1 billion.
Another important branded asset is Uzedy, a long-acting injectable treatment for schizophrenia. Management believes Uzedy has substantial long-term potential because long-acting injectable antipsychotics are increasingly being adopted in psychiatric care. Uzedy revenues increased 43% year over year to $77 million in the second quarter, with full-year 2026 sales expected to reach $270-$290 million.
Pipeline Could Further Expand Teva’s Innovative Franchise
The bigger question is whether Teva can continue this transition after the current three growth brands mature.
The company has several key branded pipeline assets in neuroscience and immunology, which it believes represent a multi-billion-dollar commercial opportunity. These include olanzapine LAI, a long-acting subcutaneous injectable for schizophrenia, and ecopipam, which was acquired through Emalex Biosciences and is being developed for pediatric Tourette syndrome. Both candidates are under U.S. regulatory review, with Teva targeting potential launches of olanzapine LAI in the fourth quarter of 2026 and ecopipam in the first half of 2027, subject to approval.
Another key pipeline asset is duvakitug, a late-stage anti-TL1A therapy being developed for inflammatory bowel diseases, including ulcerative colitis and Crohn’s disease. 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. On the second-quarter conference call, Teva announced plans to begin studies for duvakitug in two additional indications — hidradenitis suppurativa and fibrostenotic Crohn’s Disease. It believes duvakitug has pipeline-in-a-product potential.
Teva plans to make five regulatory submissions for its branded candidates over the next five years: olanzapine in 2026, ecopipam in 2027, followed by Dual Action Rescue Inhaler (a dry powder inhaler for asthma), emrusolmin (multiple system atrophy) and duvakitug between 2028 and 2030.
In 2022, only about 9% of Teva’s revenues came from its branded drugs. Teva now expects it to reach 22% of total revenues in 2026. Teva anticipates generating more than $5 billion in revenues from its branded products by 2030 compared with more than $3 billion in 2025.
Conclusion
Teva’s branded portfolio is becoming an increasingly important growth driver, reducing its reliance on traditional generics. Strong sales of Austedo, Ajovy and Uzedy, along with upcoming launches and a promising pipeline, should support further growth in branded revenues. If Teva executes successfully, branded drugs could account for a steadily larger share of its business through 2030. At the same time, Teva’s generic portfolio will remain an important source of scale and cash flow to support investments in branded medicines.
TEVA’s Price, Valuation & Estimate Discussion
Shares of Teva have rallied 24.6% so far this year compared with the industry’s 6.9% growth.
Image Source: Zacks Investment Research
The stock is trading at a decent valuation relative to the industry. Going by the price/earnings ratio, the company's shares currently trade at 13.72 on a forward 12-month basis, lower than 15.73 for the industry. However, the stock is trading above its five-year mean of 5.69.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings per share has declined from $2.06 to $2.03 for 2026 over the past 60 days and from $3.14 to $3.11 for 2027.
Over the past 60 days, estimates for AC Immune’s 2026 bottom line have improved from a loss of 84 cents per share to a loss of 60 cents per share. For 2027, earnings estimates have been stable at 17 cents per share over the same timeframe. ACIU shares have lost 16.9% year to date.
AC Immune’s earnings beat estimates in each of the trailing four quarters, the average surprise being 33.25%.
Over the past 60 days, loss estimates for Amarin have improved from 65 cents per share to 39 cents per share, while those for 2027 have improved from a loss of 51 cents per share to 50 cents. AMRN shares have declined 5.1% year to date.
Amarin’s earnings beat estimates in three of the trailing four quarters, while missing in one, with the average surprise being 65.44%.
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Teva's Branded Drugs Take Center Stage in Its Growth Strategy
Key Takeaways
Teva Pharmaceutical Industries Limited’s (TEVA - Free Report) business was heavily dependent on generic medicines for decades. That model provided scale but also exposed the company to intense price competition, product commoditization and periodic revenue declines when additional generic competitors entered the market.
Under its "Pivot to Growth" strategy, launched in 2023, Teva is strengthening the branded drugs segment by investing in research and development, pursuing targeted acquisitions and partnerships, and expanding its commercial capabilities in specialty therapeutic areas. This shift is not about abandoning generics; rather, Teva is trying to use the cash flow and commercial infrastructure of its generics business to fund a growing branded-drug franchise. Rather than attempting to compete across numerous disease categories, Teva has concentrated on areas where it possesses scientific expertise and can establish meaningful market positions, including neuroscience, immunology and respiratory diseases.
Teva’s Innovative/Branded Drugs Deliver Strong Growth
The company is seeing continued market share growth of its newest branded drugs, Austedo, Ajovy and Uzedy. Collectively, sales of the three drugs rose 43% year over year to more than $1 billion in the second quarter. Teva expects their combined sales to reach approximately $3.7 billion in 2026, representing around 17% growth at the midpoint.
Austedo remains the largest contributor to the franchise, with global sales rising 40% year over year to $696 million in the second quarter. Teva expects Austedo revenues of $2.45-$2.60 billion in 2026, with the midpoint broadly matching its previous target of more than $2.5 billion by 2027. This could put the drug roughly a year ahead of schedule. The Austedo franchise got a boost from the launch of Austedo XR, a new once-daily formulation of Austedo. Teva launched Austedo in European markets in 2026, which should further contribute to growth. Teva expects Austedo revenues to exceed $3 billion by 2030.
Teva's second important growth product is Ajovy, a CGRP-targeting medicine for migraine prevention. Ajovy’s global revenues increased 56% on a constant-currency basis to $244 million in the second quarter. Teva expects Ajovy sales of $850-$870 million in 2026, and estimates peak global sales potential of approximately $1 billion.
Another important branded asset is Uzedy, a long-acting injectable treatment for schizophrenia. Management believes Uzedy has substantial long-term potential because long-acting injectable antipsychotics are increasingly being adopted in psychiatric care. Uzedy revenues increased 43% year over year to $77 million in the second quarter, with full-year 2026 sales expected to reach $270-$290 million.
Pipeline Could Further Expand Teva’s Innovative Franchise
The bigger question is whether Teva can continue this transition after the current three growth brands mature.
The company has several key branded pipeline assets in neuroscience and immunology, which it believes represent a multi-billion-dollar commercial opportunity. These include olanzapine LAI, a long-acting subcutaneous injectable for schizophrenia, and ecopipam, which was acquired through Emalex Biosciences and is being developed for pediatric Tourette syndrome. Both candidates are under U.S. regulatory review, with Teva targeting potential launches of olanzapine LAI in the fourth quarter of 2026 and ecopipam in the first half of 2027, subject to approval.
Another key pipeline asset is duvakitug, a late-stage anti-TL1A therapy being developed for inflammatory bowel diseases, including ulcerative colitis and Crohn’s disease. 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. On the second-quarter conference call, Teva announced plans to begin studies for duvakitug in two additional indications — hidradenitis suppurativa and fibrostenotic Crohn’s Disease. It believes duvakitug has pipeline-in-a-product potential.
Teva plans to make five regulatory submissions for its branded candidates over the next five years: olanzapine in 2026, ecopipam in 2027, followed by Dual Action Rescue Inhaler (a dry powder inhaler for asthma), emrusolmin (multiple system atrophy) and duvakitug between 2028 and 2030.
In 2022, only about 9% of Teva’s revenues came from its branded drugs. Teva now expects it to reach 22% of total revenues in 2026. Teva anticipates generating more than $5 billion in revenues from its branded products by 2030 compared with more than $3 billion in 2025.
Conclusion
Teva’s branded portfolio is becoming an increasingly important growth driver, reducing its reliance on traditional generics. Strong sales of Austedo, Ajovy and Uzedy, along with upcoming launches and a promising pipeline, should support further growth in branded revenues. If Teva executes successfully, branded drugs could account for a steadily larger share of its business through 2030. At the same time, Teva’s generic portfolio will remain an important source of scale and cash flow to support investments in branded medicines.
TEVA’s Price, Valuation & Estimate Discussion
Shares of Teva have rallied 24.6% so far this year compared with the industry’s 6.9% growth.
The stock is trading at a decent valuation relative to the industry. Going by the price/earnings ratio, the company's shares currently trade at 13.72 on a forward 12-month basis, lower than 15.73 for the industry. However, the stock is trading above its five-year mean of 5.69.
The Zacks Consensus Estimate for earnings per share has declined from $2.06 to $2.03 for 2026 over the past 60 days and from $3.14 to $3.11 for 2027.
TEVA’s Zacks Rank & Stocks to Consider
Teva has a Zacks Rank #4 (Sell).
Some better-ranked stocks in the biotech sector are AC Immune (ACIU - Free Report) and Amarin (AMRN - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past 60 days, estimates for AC Immune’s 2026 bottom line have improved from a loss of 84 cents per share to a loss of 60 cents per share. For 2027, earnings estimates have been stable at 17 cents per share over the same timeframe. ACIU shares have lost 16.9% year to date.
AC Immune’s earnings beat estimates in each of the trailing four quarters, the average surprise being 33.25%.
Over the past 60 days, loss estimates for Amarin have improved from 65 cents per share to 39 cents per share, while those for 2027 have improved from a loss of 51 cents per share to 50 cents. AMRN shares have declined 5.1% year to date.
Amarin’s earnings beat estimates in three of the trailing four quarters, while missing in one, with the average surprise being 65.44%.