Latest news with #generics
Yahoo
11-07-2025
- Business
- Yahoo
TEVA Stock Up More than 20% in Three Months: Buy, Sell or Hold the Stock?
Teva Pharmaceutical Industries Limited's TEVA shares have risen 21.6% in three months. Over the past few quarters, Teva has successfully launched several biosimilars and other high-value, complex generics, with many more in the pipeline. The company's newer branded drugs, such as Austedo, Uzedy and Ajovy, are experiencing strong sales growth. Teva has implemented cost-cutting measures to improve its operating profits while reducing debt burden. All these factors have played a key role in the stock's price appreciation in the past three months. Let's discuss these factors in detail to understand how to play TEVA stock at present. The company is seeing continued market share growth of its two newest branded drugs, Austedo and Ajovy. 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. For Austedo, Teva expects to achieve annual revenues of more than $2.5 billion by 2027. 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. 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 2025, Uzedy sales are expected to be approximately $160 million. 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 for duvakitug to maximize the value of the asset. Teva and Sanofi will equally share the development costs globally. Teva's partner, 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 second half. Teva anticipates generating more than $5 billion in revenues from its branded products by 2030. Over the past few quarters, Teva has successfully launched several biosimilars and other high-value complex generics, including Novo Nordisk's Victoza, Roche's cancer drugs Rituxan (Truxima) and Herceptin (Herzuma), AbbVie's Humira (Simlandi), J&J's JNJ 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 high-value complex generics like Simlandi and Selarsdi. These are the first two biosimilars to be launched in the United States under the Teva and Alvotech strategic partnership, which includes five biosimilars. TEVA expects to launch seven (including Simlandi and Selarsdi) biosimilars in the United States and four in Europe between 2025 and 2027. Biosimilar versions of Amgen's AMGN Prolia, Regeneron's Eylea and J&J's Simponi are under review in the United States, and those of Amgen's Xgeva, Simponi and Prolia are under review in the EU. A biosimilar of Novartis' Xolair is in late-stage development. Teva's U.S. generics/biosimilars business looks stable now, much more than it has been in years. Its U.S. generics/biosimilars business rose 15% in the United States in 2024, driven by new product launches. Teva expects continued growth in its U.S. generics business in 2025, driven by complex product launches like Victoza, Forteo and others, as well as upcoming launches of Symbicort, Saxenda and biosimilars Simlandi and Selarsdi. The company aims to double its global biosimilars sales by 2027 from approximately $400 million in 2024, supported by five product launches expected by then. Teva stock has lost 25% so far this year compared with the industry's 9.5% decline. 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 6.30 on a forward 12-month basis, lower than 10.17 for the industry. However, the stock is trading above its 5-year mean of 4.11. Image Source: Zacks Investment Research The Zacks Consensus Estimate for earnings has declined from $2.56 per share to $2.51 for 2025 but risen from $2.66 to $2.72 for 2026 over the past 60 days. Image Source: Zacks Investment Research Teva's revenues have suffered significantly since it lost exclusivity for key multiple sclerosis medicine, Copaxone, in 2015. 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. However, its newer drugs, Austedo, Uzedy and Ajovy, and stable generics business are reviving top-line growth. 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 thedebt 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'simproving 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY) : Free Stock Analysis Report Johnson & Johnson (JNJ) : Free Stock Analysis Report Amgen Inc. (AMGN) : Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
11-07-2025
- Business
- Globe and Mail
TEVA Stock Up More than 20% in Three Months: Buy, Sell or Hold the Stock?
Teva Pharmaceutical Industries Limited 's TEVA shares have risen 21.6% in three months. Over the past few quarters, Teva has successfully launched several biosimilars and other high-value, complex generics, with many more in the pipeline. The company's newer branded drugs, such as Austedo, Uzedy and Ajovy, are experiencing strong sales growth. Teva has implemented cost-cutting measures to improve its operating profits while reducing debt burden. All these factors have played a key role in the stock's price appreciation in the past three months. Let's discuss these factors 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 two newest branded drugs, Austedo and Ajovy. 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. For Austedo, Teva expects to achieve annual revenues of more than $2.5 billion by 2027. 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. 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 2025, Uzedy sales are expected to be approximately $160 million. 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 for duvakitug to maximize the value of the asset. Teva and Sanofi will equally share the development costs globally. Teva's partner, 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 second half. 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 Victoza, Roche's cancer drugs Rituxan (Truxima) and Herceptin (Herzuma), AbbVie's Humira (Simlandi), J&J's JNJ 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 high-value complex generics like Simlandi and Selarsdi. These are the first two biosimilars to be launched in the United States under the Teva and Alvotech strategic partnership, which includes five biosimilars. TEVA expects to launch seven (including Simlandi and Selarsdi) biosimilars in the United States and four in Europe between 2025 and 2027. Biosimilar versions of Amgen 's AMGN Prolia, Regeneron's Eylea and J&J's Simponi are under review in the United States, and those of Amgen's Xgeva, Simponi and Prolia are under review in the EU. A biosimilar of Novartis' Xolair is in late-stage development. Teva's U.S. generics/biosimilars business looks stable now, much more than it has been in years. Its U.S. generics/biosimilars business rose 15% in the United States in 2024, driven by new product launches. Teva expects continued growth in its U.S. generics business in 2025, driven by complex product launches like Victoza, Forteo and others, as well as upcoming launches of Symbicort, Saxenda and biosimilars Simlandi and Selarsdi. The company aims to double its global biosimilars sales by 2027 from approximately $400 million in 2024, supported by five product launches expected by then. TEVA's Price, Valuation & Estimate Discussion Teva stock has lost 25% so far this year compared with the industry 's 9.5% 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 6.30 on a forward 12-month basis, lower than 10.17 for the industry. However, the stock is trading above its 5-year mean of 4.11. TEVA Stock Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for earnings has declined from $2.56 per share to $2.51 for 2025 but risen from $2.66 to $2.72 for 2026 over the past 60 days. TEVA's Estimate Movement Stay Invested in Teva's Stock Teva's revenues have suffered significantly since it lost exclusivity for key multiple sclerosis medicine, Copaxone, in 2015. 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. However, its newer drugs, Austedo, Uzedy and Ajovy, and stable generics business are reviving top-line growth. 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 thedebt 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'simproving 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. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report Teva Pharmaceutical Industries Ltd. (TEVA): Free Stock Analysis Report
Reuters
27-06-2025
- Business
- Reuters
India's Biocon drops plan to launch weight-loss drugs in China, executive says
SHANGHAI, June 27 (Reuters) - Indian drugmaker Biocon ( opens new tab has abandoned plans to market generic versions of Novo Nordisk's ( opens new tab hot-selling diabetes and weight-loss drugs in China due to local competition, a senior executive said. "We decided not to do it in China, not supply or register the product in China, either finished product or the API, because there is ample capacity and players available in China," Amit Kaptain, head of Biocon's commercial active pharmaceutical ingredients (API) business, told Reuters in Shanghai. Kaptain had said in 2024 that Biocon was aiming to launch its versions of Novo's diabetes and weight-loss drugs Ozempic and Wegovy in the world's second-biggest economy after clinical trials. Biocon's diabetes and weight-loss products would have joined at least 15 other generics or biosimilars in development by Chinese drugmakers, Reuters has reported. Biosimilars are versions of a drug that are highly similar to approved medications. Chinese drugmakers have rushed to develop generics or biosimilars as the patent for semaglutide, a key ingredient in both Ozempic and Wegovy, ends in early 2026 in China. The number of adults in China who are overweight is projected to reach 540 million in 2030 and those who are obese 150 million, increases of 2.8 and 7.5 times respectively from the year 2000, according to a 2020 study by Chinese public health researchers.
Forbes
02-06-2025
- Business
- Forbes
Teva's Layoffs Signal Deeper Fault Lines In The Pharma Business Model
The recent announcement that Teva Pharmaceuticals will lay off roughly 2,400 employees–approximately 8% of its global workforce–is a significant development in a sector already under strain. This move aims to save $700 million by 2027 as Teva attempts to rebalance its role as both a generics manufacturer and a player in branded pharmaceuticals. It reveals a deep challenge facing generics manufacturers in the U.S. and globally: the current market structure does not reward the cost-saving potential of generic or biosimilar drugs. Instead, it privileges the profit margins of expensive branded medications. Teva's layoffs aren't just a corporate adjustment, they're a symptom of a drug market that's fundamentally out of balance. We need to rethink how we reward innovation, control costs and structure distribution. Lasting change will require curbing PBM influence and redesigning incentives to reward value and competition. Teva's layoffs highlight a stark reality: generic drugs no longer offer a reliable path to growth in the U.S. market. PBMs, regulations and pricing incentives have warped the system to the point where generics and biosimilars–once seen as the key to sustainable drug costs–are no longer viable business models. In a country where generics account for nearly 90% of prescriptions but only a small fraction of total drug spending, manufacturers face razor-thin margins and limited commercial upside. Unlike branded drugs, generics do not benefit from formulary placement incentives, advertising or preferential reimbursement. This issue is compounded by global pricing distortions. In Europe, generic drugs are often priced higher than in the U.S., allowing manufacturers to capture reasonable returns abroad. But in America's free-market healthcare system, companies ironically find themselves unable to compete due to PBM-driven pricing strategies that reward high list prices and rebate structures over net-cost affordability. At the heart of the dysfunction is the pharmacy benefit manager. PBMs were originally intended to negotiate lower prices on behalf of employers and health plans. But as I discuss in a previous column, over time their profit model has shifted toward maximizing rebate revenue, most of which is derived from expensive branded medications. PBMs claim to support cost savings and patient affordability. Yet in practice, they often exclude generics and biosimilars from formularies if these alternatives don't come with a lucrative rebate. As a result, lower-cost competitors are blocked from market access, despite having met rigorous FDA approval standards. The rebate-driven model warps clinical decision-making, inflates costs and ultimately harms patients and taxpayers. The branded pharmaceutical sector deserves credit for high-risk innovation. Developing a new drug takes upwards of $2 billion in investment and years of research, with no guarantee of success. It's reasonable for manufacturers to recoup those costs, and then some, on successful assets. But that justification becomes murky when the financial system continues to reward branded products long after they've lost exclusivity, purely because of channel economics. When a biosimilar or generic alternative becomes available, the transition should be smooth, guided by comparative value and patient benefit. Instead, branded products often retain dominance through financial agreements with PBMs, payers and providers, rather than clinical necessity. There is a place for both branded and generic drugs in a functioning market, but the rules must be rational and transparent. Teva's layoffs, like the recent downsizing at Biogen and Bristol Myers Squibb, are not isolated incidents. They are predictable consequences of an industry that has become dependent on distorted incentives and short-term financial engineering. The U.S. drug pricing system rewards the wrong actors, discourages healthy competition and drives up costs without corresponding improvements in value or outcomes. The solution is not to vilify pharmaceutical manufacturers. Rather, we need to create a competitive, value-based market–one that rewards innovation, encourages adoption of cost-saving alternatives and removes the financial bottlenecks imposed by intermediaries. If we're serious about controlling drug costs, ensuring patient access and maintaining global leadership in pharmaceutical innovation, we must take a hard look at the economic levers shaping the industry. That starts with realigning the roles of manufacturers, PBMs and policymakers. Teva's restructuring should be a wake-up call, not just for generics manufacturers, but for the entire healthcare ecosystem. The system is not broken beyond repair, but it is misaligned in ways that threaten sustainability, affordability and public trust. Rebalancing these forces is a national security and public health necessity.
Wall Street Journal
18-05-2025
- Health
- Wall Street Journal
How to Reduce Drug Prices Without Ruining Innovation
Regarding Tevi Troy's op-ed 'Price Controls Won't Make America Healthy' (May 13): While lowering drug prices is a worthy goal, advocates should take note of at least two things. First, 90% of drugs Americans consume are generics for which we pay manufacturers substantially less than most other countries. Generic drug margins are already low enough to create a fragile supply chain. Second, there is tremendous cost to consumers and payors created in the middle of the pharmaceutical supply chain—between the manufacturers and the providers—by entities such as pharmacy benefit managers. True reform in that space would be a better place to find savings that wouldn't jeopardize innovation and may even improve manufacturing resilience and the continued availability of providers, such as retail pharmacies.
