Teva Targets $700 Million in Savings as Biopharma Sales Grow

Teva CEO Richard Francis said the drugmaker is on track to save about $700 million, after reinvestment, by the end of 2027. He told JPMorgan analyst Chris Schott on September 22 that growing sales of innovative medicines and cost cuts support Teva’s 30% operating-margin target for that year.

Francis described the business as shifting toward biopharmaceuticals while keeping its generics operations. He expects mid-single-digit growth after 2026, and argued that a richer mix of innovative products can lift margins, earnings and cash flow.

Teva’s three key innovative brands, AUSTEDO, AJOVY and UZEDY, brought in more than $1 billion in the second quarter, up 43% year over year in local currency. The growth contrasts with pressure in generics: second-quarter global generics revenue fell 15% in local currency, mainly as U.S. sales of generic Revlimid faced more competition.

The next growth test is whether Teva can turn its research pipeline into launches. Francis pointed to duvakitug, an inflammation drug being developed with Sanofi, and an antibody targeting IL-15, which Teva is studying for conditions including celiac disease and vitiligo. He said Teva sees potential to expand these medicines across multiple conditions.

Another near-term opportunity is long-acting olanzapine for schizophrenia. Teva said it was preparing for a U.S. launch in the fourth quarter of 2026, subject to approval; the company’s second-quarter filing also said the European regulator had accepted its application.

Francis said Teva expects a product launch roughly every year for the next five years. Investors will be watching for regulatory decisions and clinical results, while tracking whether savings and higher-margin sales can offset competition in generics.