Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) is set to outline its ambitious “Pivot to Growth” strategy and provide a comprehensive financial outlook through 2030 at the 44th Annual J.P. Morgan Healthcare Conference. Scheduled for January 13, 2026, at 8:15 AM Pacific Time, the presentation by President and CEO Richard Francis will delve into the company’s 2025 performance, strategic initiatives, and its projected trajectory in the coming years.
The company is emphasizing a transformation into a leading innovative biopharmaceutical entity, underpinned by its robust generics business. Teva highlighted the crucial role of its late-stage innovative pipeline, along with key growth drivers such as AUSTEDO®, AJOVY®, and UZEDY®. Future growth is also anticipated from pipeline assets including olanzapine LAI, DARI (ICS/SABA), duvakitug (anti-TL1A), emrusolmin, and anti-IL-15.
For fiscal year 2025, Teva anticipates revenues in the range of $16.8 to $17.0 billion. The outlook also includes an operating margin of approximately 26.2% to 27.1%, adjusted EBITDA between $4.8 and $5.0 billion, and diluted Earnings Per Share (EPS) of $2.55 to $2.65. Free cash flow is projected to be between $1.6 and $1.9 billion. Notably, these 2025 figures are expected to receive an incremental boost from duvakitug milestones, contributing an estimated $500 million in revenue and around $400 million to $430 million in adjusted EBITDA.
Looking ahead, Teva’s multi-year targets signal a commitment to sustained growth and operational improvement. The company projects a low-single-digit revenue growth rate in 2027, with a target operating profit of approximately 30% in the same year. By 2030, Teva aims to achieve a mid-single-digit revenue compound annual growth rate (CAGR) and free cash flow exceeding $3.5 billion. These projections are supported by cumulative transformation program savings expected to reach approximately $700 million by 2026, up from an initial target of $450 million to $500 million.
However, the company also signaled cautious expectations for the immediate future. Revenue for 2026 is anticipated to be flat to slightly down compared to 2025, excluding the impact of duvakitug milestones. This outlook underscores the material reliance on these milestones for incremental contributions in 2025. Investors will be keenly observing the company’s execution on its strategic priorities, particularly the advancement of its innovative pipeline and its ability to drive profitability and cash flow generation to meet its ambitious targets.
Teva’s strategic focus extends to strengthening its financial position, with a goal to reduce net leverage toward approximately 2.0-2.2x by 2027 and a commitment to securing an investment-grade credit rating. This deleveraging effort is critical for enhancing financial flexibility and reducing borrowing costs, thereby supporting long-term value creation.
The presentation will also touch upon Teva’s progress in managing its debt, with projected net leverage of around 2.5x to 2.9x for 2025, aiming for a significant reduction to approximately 2.0-2.2x by 2027. This financial discipline is a cornerstone of its “Pivot to Growth” strategy, designed to rebalance the company’s portfolio towards higher-margin innovative products while maintaining the strength of its generics business.
Key performance indicators highlighted for 2025 include:
* **Revenue:** $16.8–$17.0 billion
* **Operating Margin:** ~26.2%–27.1%
* **Adjusted EBITDA:** $4.8–$5.0 billion
* **Diluted EPS:** $2.55–$2.65
* **Free Cash Flow:** $1.6–$1.9 billion
Longer-term targets underscore the company’s growth aspirations:
* **Revenue Growth:** Low-single-digit in 2027, mid-single-digit CAGR through 2030.
* **Operating Profit:** ~30% in 2027.
* **Free Cash Flow:** Exceeding $3.5 billion by 2030.
* **Net Leverage:** Targeting ~2.0–2.2x by 2027.
The company’s approach involves a disciplined capital allocation strategy, aiming to balance investment in innovation with debt reduction and shareholder returns. The success of this strategy will hinge on the effective commercialization of its innovative medicines and biosimilars, alongside continued efficiency gains from its organizational transformation and cost-saving initiatives. Investors will be watching closely to assess Teva’s ability to navigate competitive pressures and deliver on its forward-looking financial commitments.
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