Teva Pharmaceutical Industries Limited · TASE:TEVA
Teva Pharmaceutical Industries — Q2 2025 Earnings Presentation
68 slides from Teva Pharmaceutical Industries's earnings presentation, Jul 30, 2025
Slide 1: Teva Pharmaceutical Industries Ltd. – July 30, 2025
July 30, 2025 Teva Pharmaceutical Industries Ltd.
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our futu
Slide 3: Business update
1 Business update President and Chief Executive Officer 3|
Slide 4: Agenda
1 Business update President and Chief Executive Officer 2 Pipeline update EVP, Global R&D & Chief Medical Officer 3 Financial update 4 Conclusion and Q&A EVP, Chief Financial Officer 4|
Slide 5: Pivot to Growth: four strategic pillars
Deliver on Step up Sustain generics Focus our growth engines innovation powerhouse business 5|
Slide 6: Q2'25 results
Revenues 1% Q2’25 results Adjusted EBITDA 7% Continued growth Non-GAAP EPS 10% Free Cash Flow 47% Net Debt / EBITDA 6| All compared to Q2 2024; Revenues, adjusted EBITDA and Non-GAAP EPS exclude Japan BV impact in Q2’24; In local currency, Q2’25 revenues decreased 1% vs. Q2’24 including Japan BV. %
Slide 7: Quarterly Revenue Growth vs. Previous Year
5% CAGR Q2’23 – Q2’25 Quarterly Revenue Growth vs. Previous Year +15% +14% +11% +7% +7%* Mid- +5% +5% Single +4% +4% Digit % +2%* +1%** Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 23-'27 Target CAGR with Sanofi without Sanofi -5% Growth in local currency terms 7|
Slide 8: Revenues
$498M, +19% $54M, +120% Revenues $155M, +31% +1%* $2,410M, -2%* Global generics $135M, -11% Teva api % growth In local currency, all compared to 2024. Refer to Revenues by Activity and Geographical Area slide in Appendix for detailed revenue data by reporting segments 8| * Figures exclude Japan BV r
Slide 9: AUSTEDO revenue outlook update
$2,000 - $2,050M revenue outlook update (from $1,950 - $2,050M) Continued growth of AUSTEDO U.S. revenue U.S. revenues of $495M, +22% YoY AUSTEDO quarterly sales in $M in Q2'25 ($498M global, +19% YoY) AUSTEDO growth driven by +22% in U.S. combined effects of TRx and 600 AUSTEDO XR penetration (>60%
Slide 10: UZEDY revenue outlook update
$190 - $200M 2025 revenue outlook update (from ~$160M) Continued growth of UZEDY prescriptions Revenues of $54 million in Q2'25, UZEDY TRx MoT (months of therapy) +120% YoY, and continued 14,000 growth of TRx MoT, +166% YoY 12,000 10,000 UZEDY positioned as LAI of choice and sources >80% of its NBRx
Slide 11: AJOVY revenue outlook update
$630 - $640M 2025 revenue outlook update (from ~$600M) Quarterly Global Net Sales Global revenues of $155 million in +31% Q2'25, +31% YoY 155 Demonstrated global leadership 137 142 139 20 #1 preventative aCRGP injectable in 22 115 24 28 IM new prescriptions among top U.S 22 headache centers combined
Slide 12: Late-stage pipeline assets
Late-stage pipeline assets Proven1 MoA Best / First in class potential Peak sales potential2 Targeted submission Consistent efficacy vs. oral olanzapine LAI Q4 2025 First LAI with potential for no Schizophrenia LAI franchise For U.S. NDA; Europe to follow monitoring (UZEDY and olanzapine LAI) Phase
Slide 13: Actual and expected revenue contribution from selected products
Actual and expected revenue contribution from selected products In $B >$5.0 $3.5 - $4.0 $2.3 $1.3 2022 2024 2027 2030 olanzapine LAI DARI, duvakitug, emrusolmin Global expansion Innovative sales growth driving major profitability improvement Note: >$5B revenue target in 2030, innovative franchise re
Slide 14: Global Generics by region
Global Generics decline of -2% Global Generics 2-year CAGR of 6% +4% +4% +15% +15% -6% +1% +15% -1% $1,023 $1,040 $961 $970 $413 $410 Q2-24 Q2-25 Q2-24 Q2-25 Q2-24 Q2-25 United States Europe International Markets % growth in local currency, compared to Q2 2024 14 | All global generics and IM figures
Slide 15: Strong Q2 growth driven by in-line assets and new launches
Strong Q2 growth driven by 10 in-line assets and 2 new H1’25 launches Selected products 1 2 1 10 in-line products 2024 3 2 2 new U.S. launches in H1 H1 2025 ustekinumab ranibizumab 2 new launches expected in H2 H2 Germany4 PFS1 2025 1. In collaboration with Klinge Biopharma and Formycon for the EU m
Slide 16: Principles to transform Teva
20% to be achieved in ’252 3 principles to transform Teva Modernizing the 100bps organization ↓ G&A% Net savings by 2027, after reinvestment Prioritizing ~8% in growth and pipeline, resource allocation ↓ headcount1 while compensating gRevlimid profit loss and reaching 30% OPM Optimizing ~10% externa
Slide 17: Deal still active and in advanced discussions
Deal still active and in advanced discussions Definitive decision in Q3 2025 17 |
Slide 18: H2 2025 revenue outlook
H2 2025 revenue outlook1 • AUSTEDO FY'25 guidance raised to $2,000M - $2,050M Innovative portfolio Continued growth • UZEDY FY'25 guidance raised to $190M - 200M (AUSTEDO, AJOVY, UZEDY) • AJOVY FY'25 guidance raised to $630M - $640M Generics2 (w/ OTC • gRevlimid changing market dynamics Slight growt
Slide 19: Pipeline Update
2 Pipeline Update Executive Vice President, Global R&D & Chief Medical Officer 19 |
Slide 20: Best-in-class / first-in-class pipeline assets
Best-in-Class / First-in-Class Asset & Indication Proven1 MoA Diagnosed patients2 Targeted submission Potential Consistent efficacy vs. oral olanzapine LAI (TEV-'749) Q4 2025 First LAI with potential for no Schizophrenia For U.S. NDA, Europe to follow monitoring Phase 3 DARI (TEV-'248) First ICS/SAB
Slide 21: Olanzapine LAI updates
Technology with proven safety profile, deployed in UZEDY Olanzapine LAI updates SteadyTeq® technology Expected submission in U.S. Q4’25 UZEDY patient >92% satisfaction1 Full maintenance efficacy and safety data submitted for presentation in Q3’25 Positive efficacy out to week olanzapine LAI >92% pat
Slide 22: DARI GINA guidelines and Phase 3 design
GINA guidelines recommend use of dual-action inhalers instead of single-action inhalers Illustrative example device Fluticasone propionate - Albuterol sulfate High Dose Patients with moderate Fluticasone propionate - Albuterol sulfate Primary to severe asthma Low Dose Endpoint –Patients >4 years of
Slide 23: duvakitug UC and CD
Study anticipated to provide >1 year of exposure for all patients • Including both induction and maintenance studies More than one dose to be tested duvakitug UC and CD • Convenient, patient friendly sub- cutaneous administration Targeting ~1,000 patients in each indication Q4’25 UC and CD anticipat
Slide 24: emrusolmin TOPAS-MSA Phase 2 study
emrusolmin is an orally administrated small molecule designed to target alpha-synuclein aggregation, one of the core pathogenic mechanisms of MSA TOPAS-MSA: Ph 2 Study* Target enrollment ~200 participants Treatment period Follow-up period (~48 weeks) (4 weeks) Primary endpoint Screening emrusolmin c
Slide 25: Strategic partnership with Fosun Pharma
Strategic partnership with Fosun Pharma in the Greater China area Capitalizes on China’s burgeoning clinical development infrastructure and patient unmet need Will accelerate development of innovative pipeline both in China and globally Supports R&D partnership strategy to drive Pivot to Growth IL2
Slide 26: Anti-IL-15 Phase 1b celiac study
Ph 1b exploratory study in Celiac patients Unique binding site on IL-15 compared to suggests gut protection competitors 75 TEV53408 150 mg Placebo Percent Change from Baseline (%) 50 Human antibody with highest* affinity for IL-15 25 Highly potent antibody targeting the core of the disease's mechani
Slide 27: IL-13 & TSLP multibody
Adaptable profile based on concentration in environment IL-13 & IL-13 < TSLP IL-13 > TSLP IL-13 ≈ TSLP • A multibody that targets IL-13 TSLP levels and TSLP, and has potential to treat TH-2-driven inflammatory diseases • Discovered with the use of AI technology • Teva has initiated IND- enabling stu
Slide 28: Financial update
3 Financial update Executive Vice President, Chief Financial Officer 28 |
Slide 29: Q2'25 10th consecutive quarter of revenue growth
Q2 ‘25 10th consecutive quarter of revenue growth Continued improvements in working capital and leverage Significant progress with Teva Transformation programs; On track for 30% OPM by ’27 Confirmed U.S. tariffs absorbed in 2025 non-GAAP outlook 29 | OPM = Operating margin Revenue growth figures exc
Slide 30: Q2 2025 GAAP and non-GAAP results
ΔYoY $ millions, except EPS Q2 2025 Q2 2024 ΔYoY Q2 2025 Q2 2024 ΔYoY Excluding Japan BV GAAP Non-GAAP Revenues 4,176 4,164 0% 4,176 4,164 0% +2% Gross profit 2,102 2,024 +4% 2,278 2,205 +3% +5% Gross profit margin 50.3% 48.6% +172 bps 54.6% 52.9% +161 bps +131 bps Operating income (loss) 455 (5) NA
Slide 31: Gross Debt $17.2B, Net Debt $15.1B
$ billions CHF EUR 2.8 USD 2.5 2.2 2.3 2.1 2.0 1.8 0.8 0.4 0.5 - - 2025 2026 2027 2028 2029 2030 2031 2032 ... 2036 … 2046 Gross Debt $17.2B Net Debt $15.1B Duration 5.95 WAC ~4.7% (Pre- and post-refinancing) 31 | 2025 represents remaining maturities for H2’25
Slide 32: Expected '25 progress and net savings impact
Expected ’25 Progress Net Savings Impact 57-58% gross margin ~100bps G&A reduction driven by shift to innovative and • ~20 bps reduction expected in ’25* manufacturing lean program Modernizing ~20% • Headcount reduction and optimizing layers the Organization • Wide AI-digital based impact delivered
Slide 33: 2025 Outlook
2024 2024 2025 Outlook As Reported1 Japan B.V6 January 29, 20251 May 7, 20252 July 30, 20252 Revenues3 AUSTEDO® ($m) 1,688 1,900-2,050 1,950-2,050 2,000-2,050 ↑ AJOVY® ($m) 507 ~600 ~600 630-640 ↑ UZEDY® ($m) 117 ~160 ~160 190-200 ↑ COPAXONE® ($m) 503 ~370 ~370 ~370 Operating Income 26.2% 17.3% 24.4
Slide 34: Capital allocation priorities
Better alignment of debt maturities with FCF 1 and reaching 2.0x leverage Cash flow from operations Increase S&M to support Innovative franchise 2 growth 3 Continue investments in Innovative R&D and potential value-creative Business Development Portfolio optimization Exit Japan BV and Teva api 4 Cre
Slide 35: 2027 financial targets
Revenue growth Operating income Net debt / adjusted Cash-to-earnings2,3,4 (CAGR ’23 – ’27) margin1,2 EBITDA2 Mid-single digit % 30% 2.0x 80% 1. Operating income margin = Non-GAAP operating income divided by net revenues; excluding potential impact of business development deals depending on timing 2.
Slide 36: Conclusion & Q&A
4 Conclusion & Q&A President and Chief Executive Officer 36 |
Slide 37: Growth phases and peak sales potential
Sustain growth Sustain growth 2028+ 2028+ AUSTEDO: >$3B peak sales1 AJOVY Accelerate growth Accelerate growth 2025-2027 2025-27 LAI Franchise (UZEDY and olanzapine LAI): $1.5-2B peak sales1 AUSTEDO: >$2.5B (in '27) Biosimilars (~$0.8B in ’27) Return Return to growth to growth AJOVY 2022-2024 2022-24
Slide 38: Continuing to deliver on Pivot to Growth
Continuing to deliver on Pivot to Growth +27% revenue growth of focused innovative portfolio Clear path towards 30% OPM and our other 2027 targets Through expected innovative growth, stable generics business, and Teva transformation with ~$700M savings Advancing our innovative pipeline with near-ter
Slide 39: Q&A
Q&A
Slide 40: Innovative and Biosimilar Pipeline
teva Innovative and Biosimilar Pipeline
Slide 41: Innovative medicine pipeline by development stage
Under Regulatory Preclinical Phase 1 Phase 2 Phase 3 Review TEV-’279 Anti-IL-15 duvakitug Olanzapine LAI UZEDY® Neuroscience (TEV-’408) (TEV-’574)2 (TEV-’749) Bipolar Disorder Vitiligo Ulcerative Colitis & Schizophrenia TEV-’288 Neuroscience Crohn’s Disease TEV-’192 Immunology & Anti-IL-15 TEV-’325
Slide 42: Biosimilar Products
Under Regulatory Select Commercial Preclinical Clinical Approved Review Biosimilar Products Biosimilar to Biosimilar to Ahzantive® 6 TEV-’285 Xgeva®3 Prolia® Biosimilar to (denosumab) (denosumab) Eylea® TEV-’261 6 (aflibercept)4 Biosimilar to Biosimilar to TEV-’289 Xolair® Simponi® TEV-’2941 (omaliz
Slide 43: Additional Information
teva Additional Information
Slide 44: H1 2025 GAAP and non-GAAP results
$ millions, except EPS H1 2025 H1 2024 ΔYoY H1 2025 H1 2024 ΔYoY GAAP Non-GAAP Revenues 8,067 7,983 +1% 8,067 7,983 +1% Gross profit 3,979 3,795 +5% 4,332 4,168 +4% Gross profit margin 49.3% 47.5% +178 bps 53.7% 52.2% +149bps Operating income (loss) 975 (223) n.a. 2,079 1,948 +7% Operating income ma
Slide 45: Q2 2025 income statement
$ millions, except EPS Q2-25 Q2 2025 Margins Q2-24 Q2 2024 Margins Change Revenues 4,176 4,164 0% COGS 2,074 49.7% 2,140 51.4% (3%) Gross profit 2,102 2,024 4% Gross margin 50.3% 48.6% +172 bps R&D 244 5.8% 269 6.5% (9%) S&M 654 15.7% 656 15.8% (0%) G&A 305 7.3% 283 6.8% +8% Legal settlements and lo
Slide 46: H1 2025 income statement
$ millions, except EPS H1-25 H1 2025 Margins H1-24 H1 2024 Margins Change Revenues 8,067 7,983 1% COGS 4,088 50.7% 4,188 52.5% (2%) Gross profit 3,979 3,795 5% Gross margin 49.3% 47.5% +178 bps R&D 490 6.1% 511 6.4% (4%) S&M 1,276 15.8% 1,265 15.8% 1% G&A 603 7.5% 561 7.0% 7% Legal settlements and l
Slide 47: FX impact on results
Q2 Q2 FX Diff net H1 H1 FX Diff net $ millions Diff Diff 2025 2024 Effect FX 2025 2024 Effect FX Revenues 4,176 4,164 12 49 (37) 8,067 7,983 83 (53) 136 Gross Profit GAAP 2,102 2,024 78 18 60 3,979 3,795 184 (50) 234 Gross Profit Non-GAAP 2,278 2,205 73 18 55 4,332 4,168 164 (50) 214 Operating incom
Slide 48: Net revenues and non-GAAP margins by quarter
4,457 $ millions 4,332 4,229 4,164 4,176 3,878 3,850 3,891 3,819 3,661 58.2% 52.2% 53.5% 52.9% 53.7% 54.8% 52.8% 54.6% 49.1% 51.4% 34.7% 26.1% 26.5% 25.3% 28.0% 27.6% 27.1% 23.4% 24.3% 21.4% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net Revenues Non-GAAP Gross P
Slide 49: Revenues by activity and geographical area
$ millions Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 U.S. Segment 2,110 2,225 1,975 1,910 2,151 Generic products 1,023 1,094 674 849 961 AJOVY® 42 58 63 53 63 AUSTEDO® 407 435 518 396 495 BENDEKA®/TREANDA® 41 40 41 36 40 COPAXONE® 81 69 63 54 62 UZEDY® 24 35 43 39 54 Anda 373 380 402 373 365 Other 119 115 171 1
Slide 50: Non-GAAP net income, operating income and EPS
$ millions, EPS in $ 1,546 1,214 1,168 1,133 1,020 1,056 1,011 946 892 785 1,135 798 816 769 677 697 629 602 548 457 1.00 0.60 0.61 0.69 0.71 0.66 0.40 0.56 0.48 0.52 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Non-GAAP Net Income Non-GAAP Operating Income Non-GAA
Slide 51: Non-GAAP operating income bridge Q2
5% CAGR Q2’23 – Q2’25 $ millions +77 (+7%) Both USD and Local Currency 1 22 -23 78 1,133 1,056 Q2 ‘24 US EU IM Other Q2 ‘25 51 |
Slide 52: Non-GAAP operating income bridge H1
5% CAGR Q2’23 – Q2’25 $ millions +131 (7%) +182 In local Currency (9%) 260 -71 -19 -38 2,079 1,948 H1 ‘24 US EU IM Other H1 ‘25 52 |
Slide 53: Non-GAAP operating income by segment
$ millions 1,214 1,168 109 (9%) 19 (2%) 1,133 1,056 74 (6%) 12 (1%) 141 (12%) 73 (7%) 946 373 (31%) 97 (10%) 364 (32%) 342 (32%) 438 (37%) 329 (35%) 748 (62%) 706 (62%) 629 (60%) 569 (49%) 532 (56%) -11 -16 (-1%) -13 (-1%) (-1%) Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Revenues 4,164 4,332 4,229 3,891 4,176 Ot
Slide 54: COGS and OPEX
-48 (-1%) In local currency -46 (-1%) -66 (-2%) In local currency -115 (-4%) 6,036 5,988 $ millions 3,109 3,043 3,815 3,735 (63%) (62%) 1,959 1,898 (63%) (62%) 2,220 2,253 1,149 1,145 (37%) (38%) COGS (38%) (37%) OPEX Q2-24 Q2-25 H1-24 H1-25 Revenues 4,164 4,176 7,983 8,067 GP% 52.9% 54.6% 52.2% 53.
Slide 55: Adjusted EBITDA
$ millions 1,327 1,282 1,233 1,168 1,041 1,005 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 55 | Please see our press release reporting our financial results this quarter for a reconciliation of Adjusted EBITDA to its nearest GAAP equivalent
Slide 56: Free cash flow
$ millions 2024 Total: $2,068m H1 2025 Total: $583m 922 790 476 324 107 32 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Free cash flow includes cash flow from operating activities, beneficial interest collected in exchange for securitized accounts receivables, proceeds from divestitures of busine
Slide 57: EBITDA to free cash flow bridge
$ millions (-757) (-61%) (242) (216) 69 (61) (25) 1,233 (236) 9 (96) (294) 336 476 227 Non-GAAP Interest Tax payments A/R Inventory Legal A/P & Other Securitization Operating Securitization Asset sales, Free cash flow EBITDA payments, net settlements cash flow reclass net; paid Capex gross 57 | Q2 s
Slide 58: Cash conversion and net debt
Sustaining cash conversion above 80% while unlocking capital of ~$1.7B NWC % of revenues Cash generation Cash Conversion excl. 82% 94% ~80% legal settlements 15.9% Scheduled Legal ~0.1 ~0.5 ~0.6-0.7 11.9% settlements $bn 6.6% 4.0% Free Cash Flow 2.2 2.2 1.6-1.9 $bn 2019 2024 Q2 ’25 ‘19 – ‘22 Avg ‘23
Slide 59: Cash conversion and free cash flow
3000 2,852 120% 2,589 2,438 2,387 2500 2,300-2,500 100% 2,243 2,068 2000 1,600-1,900 80% 1500 60% 1000 40% 600-700 465 522 500 20% 195 80% 87% 82% 98% 72% 91% 0 0% 2022 2023 2024 2025 Cash conversion Cash conversion excl. legal settlements FCF Legal settlements FCF excl. legal settlements Free cash
Slide 60: Non-GAAP gross profit, OPEX, operating income and FCF
Non-GAAP Gross Profit ($m) Non-GAAP OPEX ($m) Non-GAAP Operating Income ($m) Free Cash Flow ($m) 54.6% 27.1% 52.9% 27.4% 25.3% 27.6% $1,133 $2,278 61.9% $2,205 $1,056 46.5% $1,149 $1,145 $476 $324 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 Q2 24 Q2 25 % represents chart metric as a % of revenues S&M R&D G&
Slide 61: Balance sheet summary
$ billions June 30, 2025 March 31, 2025 Diff Cash and Cash Equivalents 2.2 1.7 0.5 AR Trade 3.6 3.4 0.2 Pre-paid Expenses and Other Current Assets 3.4 3.2 0.2 Inventory 3.5 3.2 0.2 Fixed Assets 4.8 4.6 0.2 Intangible Assets 4.1 4.2 (0.0) Goodwill 15.9 15.5 0.5 Other Long-Term Assets 2.6 2.6 0.0 Tota
Slide 62: Gross debt to net debt bridge
$ billions 2.3 (2.3) 0.5 (2.2) 17.2 16.7 15.1 Mar 31, Debt issued Debt tendered FX and Other Jun 30, Cash balance Jun 30, 2025 2025 2025 Gross Debt Gross Debt Net Debt 62 |
Slide 63: Net debt / EBITDA
$ billions Net Debt 16.4 15.7 14.5 15.1 15.0 4.8 5.0 5.2 4.8 4.9 EBITDA MAT Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Net Debt / EBITDA MAT (x) 3.30 3.04 3.03 3.10 3.09 Leverage 74% 75% 77% 73% 72% 63 | Teva's Net Debt/EBITDA MAT covenant ratio limit is 4.00x for Q1-Q4 2025; MAT = Moving Annual Total
Slide 64: Debt chart
$ billions $35.0 $34.0 $33.0 $31.0 $29.0 $27.0 $25.0 $23.0 $21.0 $19.0 $17.0 $15.1 $15.0 $13.0 $11.0 $9.0 64 |
Slide 65: Credit rating upgrades
May 2025 May 2025 November 2024 Upgraded rating to Ba1, Upgraded rating to BB+, Upgraded rating to BB, with stable outlook with stable outlook with positive outlook 65 | INVESTOR PRESENTATION
Slide 66: Q2 2025 non-GAAP adjustments
$ millions Q2 2025 Comments Amortization 148 Impairment of intangible Mainly related to products in the U.S. and Europe 42 assets Impairment of tangible 58 Mainly related to the classification of our API business as held for sale assets Legal settlements 166 Equity compensation plans 38 Restructurin
Slide 67: Japan BV financials
$ millions Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Revenues 91 75 73 88 75 Gross profit 29 27 27 26 22 Gross profit margin 32.1% 36.4% 36.7% 30.0% 29.6% Operating income (loss) 15 14 14 13 10 Operating income margin 16.3% 18.9% 19.2% 14.5% 12.8% Minority 5 5 5 4 4 Contribution to Teva’s earnings per
Slide 68: We are all in for better health
v We are all in for better health
Teva Pharmaceutical Industries — Q2 2025 Earnings Presentation on 6ix