Teva’s Growth Pivot Gains Traction Beyond Generics

Teva’s three key innovative medicines generated more than $1 billion in second-quarter revenue, a milestone that helps explain why management says its long-running turnaround has entered an acceleration phase.

AUSTEDO, AJOVY and UZEDY collectively grew 43% in local-currency terms in the quarter, with each product expanding at least 40%, according to Teva. AUSTEDO, used for movement disorders, produced $696 million in global sales, while migraine treatment AJOVY reached $244 million. UZEDY, Teva’s long-acting schizophrenia injection, generated $77 million in U.S. revenue, up 43% from a year earlier.

The shift matters because Teva’s legacy generics business is still absorbing sharp price and volume pressure. Total second-quarter revenue fell 1% to $4.1 billion, and U.S. generic-product revenue dropped 31%, largely because competition eroded sales of lenalidomide, the generic version of Bristol Myers Squibb’s Revlimid.

Biosimilars are becoming the bridge between those two businesses. Teva says it now has 15 biosimilars on the market and expects that number to expand materially through new launches and partnerships. The company has reiterated a target of at least $800 million in biosimilar revenue by 2027, a goal Chief Executive Richard Francis recently said it is on track to exceed.

Recent moves include the European launch of AHZANTIVE, a biosimilar to Regeneron and Bayer’s Eylea, and a global licensing agreement with Polpharma Biologics for a proposed Ocrevus biosimilar. Teva is also advancing candidates tied to Xolair, Xgeva and other major biologic franchises.

The pipeline adds another layer. Teva paid about $700 million for Emalex Biosciences and its Tourette syndrome candidate ecopipam, then submitted the drug for U.S. regulatory review. Its long-acting olanzapine program is also being prepared for a potential U.S. launch in the fourth quarter of 2026.

Investors are being asked to value Teva less like a volume-driven generic manufacturer and more like a hybrid biopharma company. That re-rating depends on execution. The company must keep launching complex medicines, protect margins in generics and convert stronger cash generation into debt reduction, while its branded portfolio carries a larger share of the business.