Tel Aviv, April 29, 2026, 20:03 (IDT)
- Teva’s first-quarter profit topped forecasts, with Austedo, Ajovy, and Uzedy making up for softness in generics.
- Shares traded in New York gained roughly 11%, spotlighting Teva’s efforts to move past its reliance on generic drugs.
- The company is putting down $700 million upfront to acquire Emalex Biosciences, picking up a late-stage drug candidate for Tourette syndrome in the process.
Teva Pharmaceutical Industries shares rallied in New York on Wednesday, with the Israeli drugmaker topping first-quarter profit forecasts. Results benefited from a quicker pivot to branded drugs and reduced exposure to lower-margin generics. For investors, it’s a more direct look at Chief Executive Richard Francis’s turnaround efforts—showing more than another quarter of trimming expenses.
The timing here is key: Teva’s big three growth products — Austedo, Ajovy, and Uzedy — have stepped up as its generics business slows. The trio pulled in $838 million last quarter, marking a 41% rise in local currency. Meanwhile, global generics sales dropped 16%, with heavier competition for lenalidomide capsules, the generic form of Revlimid, dragging results.
Teva posted adjusted earnings of 53 cents per share, topping the 48-cent consensus from analysts polled by LSEG, Reuters reported. Revenue reached $3.98 billion, beating the $3.8 billion estimate.
Austedo kept its top spot, bringing in $578 million globally for a 41% gain. Ajovy sales climbed 35% to $196 million, and Uzedy surged 62% to $63 million, according to the company. In the U.S., the trio posted $709 million—surpassing the $612 million from U.S. generics and biosimilars.
J.P. Morgan’s Chris Schott pointed out that investors are shifting focus to Teva’s branded lineup, where Austedo is showing solid growth. Schott also flagged more pipeline news coming later this year, and said the pickup in growth through 2027 sets the stage for what he called an “attractive setup for shares.” Reuters
Francis pointed to “strong growth” in Teva’s core innovative products last quarter, and highlighted an ongoing pivot in its portfolio mix. After years marked by heavy debt, costly legal battles, and Copaxone’s exclusivity slipping away, the company has been working to win back investors. GlobeNewswire
Competitive heat hasn’t let up. Mylan—now folded into Viatris—rolled out generic Copaxone back in 2017. Teva continues to grapple with lawsuits over its alleged moves to fend off generics for what was once a blockbuster MS therapy. That track record helps explain why branded product growth packs extra significance for Teva right now.
Teva announced plans to buy privately owned Emalex Biosciences for $700 million in cash, plus up to $200 million tied to commercial milestones and royalties. The acquisition brings in ecopipam, an investigational treatment aimed at pediatric Tourette syndrome. Teva expects to file a New Drug Application in the U.S. during the second half of 2026.
Ecopipam carries FDA Orphan Drug and Fast Track tags—both aimed at medicines for rare or severe conditions. According to Teva, Emalex’s late-stage trial hit statistical significance on its primary endpoint. Even so, the drug still faces a regulatory review before hitting the market.
The agreement pressures short-term profits. Teva maintained its 2026 revenue target between $16.4 billion and $16.8 billion, but its revised adjusted EPS forecast—now $1.91 to $2.11—reflects the Emalex deal. Without that, Teva said, adjusted earnings would have landed higher, in the $2.57 to $2.77 range.
There’s also the buyback story, though nothing concrete yet. Teva’s board has directed management to prepare for a potential share repurchase—pending legal signoff, market dynamics, where the stock trades, and competing demands on capital.
The branded-drug narrative could run into its own challenges. Francis told Reuters it’s “hard to understand and predict” if Austedo will experience a pullback as U.S. price talks approach under the Inflation Reduction Act in 2027. CFO Eli Kalif, for his part, noted the company has so far faced just “nominal increases” in certain transport and energy costs linked to the Middle East conflict. Reuters
