99 slides from Teva Pharmaceutical Industries's investor day presentation, May 29, 2025
Slide 1: Welcome!
Welcome!
Slide 2: Pivot to Growth: Accelerate Growth
PIVOT TO GROWTH Accelerate Growth May 29, 2025 Teva Pharmaceutical Industries Ltd.
Slide 3: Senior Vice President, Head of Investor Relations
Senior Vice President, Head of Investor Relations 3|
Slide 4: 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 5: Agenda
1 Accelerate growth 20 min President & Chief Executive Officer 2 Deliver on growth engines 40 min EVP, U.S. Commercial 3 Step up innovation 25 min Guest speaker 4 Sustain Gx powerhouse 15 min EVP, Global R&D & Chief Medical Officer EVP, European Commercial 5 Focus our business 20 min EVP, Chief Fina
Slide 6: Accelerate growth
1 Accelerate growth President and Chief Executive Officer 6|
Slide 7: Return to growth, accelerate growth, sustain growth
2028+ 2025-2027 2022-2024 Sustain growth Accelerate growth Return to growth 7|
Slide 8: As presented in May 2023 at the New York Stock Exchange
8| As presented in May 2023 at the New York Stock Exchange
Slide 9: Deliver on growth engines, step up innovation, sustain generics, focus business
Deliver on Step up Sustain generics Focus our growth engines innovation powerhouse business ~30% innovative franchise Multiple pivotal read-outs Returning generics powerhouse Net leverage down to 3.1x CAGR, reaching >$2.3B (UZEDY, olanzapine LAI, to growth +5% CAGR duvakitug) TAPI returned to growth
Slide 10: Revenue 2022 to 2024 by business
2022 2024 Turning AUSTEDO into a blockbuster AUSTEDO / AJOVY $1.3B +$0.9B $2.2B Maximizing AJOVY New launches UZEDY launched in 2023 – paving the way +$0.1B $0.1B (UZEDY) for broader LAI franchise Generics (with OTC Returning to growth across geographies $8.6B +$0.9B $9.5B and biosimilars) gRevlimid
Slide 11: Seasoned professionals with 20+ years of experience
Richard Francis Eli Kalif Dr. Eric A. Hughes President and CEO Executive Vice President Executive Vice President Joined Teva in 2023 Chief Financial Officer Global R&D & Chief Medical Officer Former Sandoz & Biogen Joined Teva in 2019 Joined Teva in 2022 Former Flex Former Vertex & Novartis Christin
Slide 12: Deliver on growth engines
Deliver on Step up Sustain generics Focus our growth engines innovation powerhouse business 12 |
Slide 13: Innovative sales growth driving major profitability improvement
Deliver on growth engines 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 revenue evolution (excl. legacy innovative and
Slide 14: Late-stage pipeline assets
Step up innovation Late-stage pipeline assets Proven MoA Best / First in class potential Peak sales potential1 Targeted submission olanzapine LAI Consistent efficacy vs. oral >$1.5 – 2.0B H2 2025 First LAI with potential for no LAI franchise Schizophrenia monitoring (UZEDY and olanzapine LAI) For U.
Slide 15: Sustain generics powerhouse
Sustain generics powerhouse Our generics powerhouse in 2027 Sustaining a stable & robust powerhouse OTC EU & IM Gx EU & IM Right portfolio & pipeline, with multiple growth Biosimilars 1 segments while diversifying profile Gx launches, biosimilars, OTC driving growth Stable vs. '24 Leading commercial
Slide 16: Focus our business: savings programs
Focus our business Progress by '26 3 principles to transform 2 programs embodying Teva principles Modernizing the 100bps Transforming our operations organization ↓ G&A% & COGS base Network, manufacturing and procurement Net savings by 2027, after reinvestment Prioritizing in growth and pipeline, whi
Slide 17: Financial targets for 2027
Revenue growth Operating income Net debt / adjusted Cash-to-earnings2,3,4 (CAGR ’22 – ’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 18: Return to growth, accelerate growth, sustain growth
Sustain growth 2028+ AUSTEDO: >$3B peak sales1 AJOVY Accelerate growth 2025-2027 LAI Franchise (UZEDY and olanzapine LAI): $1.5-2B peak sales1 AUSTEDO: >$2.5B (in '27) Biosimilars Return to growth 2022-2024 AJOVY duvakitug: $2-5B peak sales1,2 LAI Franchise AUSTEDO: $1.7B DARI: $1B peak sales1 (UZED
Slide 19: Deliver on growth engines
2 Deliver on growth engines Executive Vice President, U.S. Commercial 19 |
Slide 20: Go-to-market expertise driving Innovative franchise to >$5B by 2030
Deliver on growth engines Continue to demonstrate go-to-market expertise, driving our Innovative franchise to >$5B by 2030 Grow our flagship brand AUSTEDO, targeting >$2.5B sales in 2027 incl. IRA impact Build best-in-class LAI antipsychotic franchise with UZEDY and olanzapine LAI, aiming for $1.5-2
Slide 21: Innovative sales growth driving major profitability improvement
Deliver on growth engines + ~$1.5B + ~$1.5B In $B >5.0 3.5- +$1B 4.0 2.3 1.3 2022 2024 2027 2030 Olanzapine LAI DARI, duvakitug, emrusolmin Global expansion Innovative sales growth driving major profitability improvement Innovative franchise revenues evolution (excl. legacy innovative and potential
Slide 22: Deliver on growth engines
Deliver on growth engines 22 |
Slide 23: AUSTEDO revenues
AUSTEDO Deliver on growth engines AUSTEDO revenues ($B) Strong historical performance, growing Ascending trajectory including IRA every quarter since 2019 impact >3.0 >2.5 Guidance Actuals 1.95-2.05 Projected 1.7 1.0 1.2 ... 0.8 0.6 0.4 2019 2020 2021 2022 2023 2024 2025 2026 2027 Peak year 23 | IRA
Slide 24: AUSTEDO: U.S. tardive dyskinesia patients
AUSTEDO Deliver on growth engines Number of U.S. TD patients in thousands1 Tardive Dyskinesia 785k patients 120k Diagnosed patients 50k Treated with VMAT2i’s 2 treatment options only2 ~50% AUSTEDO XR NBRx are treatment-naïve VMAT2i patients TD: Tardive Dyskinesia; HD: Huntington's diseases; VMAT2: V
Slide 25: AUSTEDO: address largely untreated population
AUSTEDO Deliver on growth engines Address largely Innovate to meet untreated population patient needs U.S. patients not on of new AUSTEDO patients therapy start on XR, supporting optimal dosing (+38% mg dispensed)1 1. Total U.S. mg Q1 2025 growth year on year; Availability of AUSTEDO XR one pill, on
Slide 26: AUSTEDO: targeted investment and enhanced capabilities
AUSTEDO Deliver on growth engines Address largely Targeted Enhanced Commercial untreated population Investment Capabilities Strategic investments in Building world-class patient IMPACT Registry, DTC, broad services in support of seamless market access and support, HCP and patient experience U.S. pat
Slide 27: AUSTEDO: innovate to meet patient needs
AUSTEDO Deliver on growth engines 95% 98% Innovate to meet of patients achieve of TD patients say it patient needs ≥24mg dosage with is easy to use2 titration kit1 Maximizing clinical value AUSTEDO XR one pill once- AUSTEDO XR reducing and differentiation since daily enables patients daily pill burd
Slide 28: olanzapine LAI
Deliver on growth engines olanzapine LAI 28 |
Slide 29: LAI Schizophrenia Franchise
LAI Schizophrenia Franchise Deliver on growth engines Preferred LAI for patients appropriate for risperidone or paliperidone Franchise peak sales expectation Potential to be preferred LAI for patients olanzapine appropriate for olanzapine LAI Leveraging our go-to-market expertise in this category LA
Slide 30: Schizophrenia market and LAI share
LAI Schizophrenia Franchise Deliver on growth engines schizophrenia market, of which for LAI1 Number of patients in millions (2024) ~2.3M ~2.4M ~2.4M Schizophrenia prevalence 2.1M 2.3M Diagnosed patients 2.3M 1.7M 1.8M Treated patients 1.8M 13% 16% % of patients treated with LAI 1. US & EU combined;
Slide 31: LAI penetration in treated schizophrenia population
LAI Schizophrenia Franchise Deliver on growth engines LAI penetration in total treated schizophrenia population, in % +7 pp Answering a true unmet need with a +5 pp differentiated LAI franchise Addressing a broad spectrum of patients with UZEDY & olanzapine LAI: 65-80% of patients likely to switch a
Slide 32: Complex patient journey and requirements to increase LAI penetration
LAI Schizophrenia Franchise Deliver on growth engines Requirements to increase LAI Complex patient journey creating multiple relapses penetration Deep understanding of Often misdiagnosed as stress or depression for several years LAI potentially prescribed the patient journey Demonstrated safe profil
Slide 33: LAI product profile comparison
LAI Schizophrenia Franchise Deliver on growth engines Olanzapine LAI Oral anti- Traditional UZEDY (TEV-'749) psychotics marketed LAIs1 Expected similar efficacy Efficacy Proven efficacy to oral olanzapine Therapeutic Within 6-24hs Dual injections Within 24hs - needed levels (no loading dose or suppl
Slide 34: UZEDY prescriptions growth
LAI Schizophrenia Franchise Deliver on growth engines UZEDY TRx MoT (months of therapy) Today’s LAI of choice due to: 12,000 10,000 risperidone LAI CNS expertise, reflected among field sales and medical 8,000 market share captured1 6,000 Strong market access paired with 4,000 patient centric support
Slide 35: Deliver on growth engines
Deliver on growth engines 35 |
Slide 36: AJOVY revenues
AJOVY Deliver on growth engines AJOVY revenues ($B) Building on commercial excellence Guidance 0.6 Continuing Global presence across 43 countries with #1 to grow leadership positions in several markets for aCRGPi1 0.5 0.4 0.4 Performing in a competitive market 0.3 Ability to win contracts across geo
Slide 37: Physician perspective
Deliver on growth engines Community Practioner, Private Practice Chief Medical Officer, Passageway Residences of Dade County Assistant Professor, the Florida International University School of Medicine Coral Gables, FL Dr. Melnick is a consultant for Teva Pharmaceuticals 37 |
Slide 38: Go-to-market expertise driving Innovative franchise to >$5B by 2030
Deliver on growth engines Continue to demonstrate go-to-market expertise, driving our Innovative franchise to >$5B by 2030 Grow our flagship brand AUSTEDO, targeting >$2.5B sales in 2027 including IRA impact Build best-in-class LAI antipsychotic franchise with UZEDY and olanzapine LAI, aiming for $1
Slide 39: Step up innovation
3 Step up innovation Executive Vice President, Global R&D & Chief Medical Officer 39 |
Slide 40: R&D focus: therapeutic areas, proven science, disciplined capital
Step up innovation Focus on TAs & indications where we have the most impact for patients Favor proven science to maximize probability of success Deploy capital with discipline and through partnerships 40 | TAs: Therapeuthic Areas
Slide 41: Pipeline with higher probability of success
Step up innovation Focus on TAs & indications Favor proven science to Deploy capital with discipline where we have the most maximize probability of and through partnerships impact for patients success Combining • Track record in CNS, • Targeting proven MoAs • Lean research engine, leveraging Immunol
Slide 42: Selected assets from our Innovative pipeline
Step up innovation Selected assets from our Innovative pipeline Phase I Phase II Phase III Potential accelerated pathways Anti-IL-15 (TEV-'408) emrusolmin1 (TEV-'286) olanzapine LAI (TEV-'749) Vitiligo MSA Schizophrenia Sery4331 (TEV-'287) Anti-IL-15 (TEV-'408) DARI (TEV-'248) Parkinson's disease Ce
Slide 43: Asset and indication, MoA and targeted submission
Step up innovation Asset & Indication Proven MoA BiC or FiC potential Diagnosed patients1 Targeted submission Consistent efficacy vs. oral olanzapine LAI (TEV-'749) H2 2025 First LAI with potential for no Schizophrenia For U.S. NDA, Europe to follow monitoring DARI (TEV-'248) First ICS/SABA combo fo
Slide 44: Olanzapine LAI
Olanzapine LAI Step up innovation SteadyTeq® technology UZEDY patient >92% satisfaction1 Olanzapine LAI >92% patient satisfaction2 LAI: Long Acting Injectable 1. From companion survey, n=63 (https://www.uzedyhcp.com/companion-survey) 2. Based on TEV-'749 SOLARIS online survey results, n=70 patients
Slide 45: Duvakitug UC and CD: IBD patients
Duvakitug UC and CD Step up innovation IBD is a chronic inflammatory disease Limited remission rate among patients Number of U.S., EU51 and Japan patients in thousands (2023) ~3.2M <50% of treated IBD patients achieve clinical Treated IBD patient remission, responsiveness can be lost over time Treat
Slide 46: Duvakitug UC and CD: profile
Duvakitug UC and CD Step up innovation Duvakitug selected due to preferential inhibition of TL1A-DR3 Best-in-class Primary endpoint achieved at doses tested & regardless of prior advanced therapy experience. At the higher dose: efficacy profile • UC: 48% clinical remission rate (27% placebo adjusted
Slide 47: Duvakitug: Phase II remission and response rates
Duvakitug UC and CD Step up innovation UC: Clinical remission (%) across trial arms, Ph II CD: Endoscopic response (%) across trial arms, Ph II 29% 26% 44% 25% 22% 12% 7% 25% 53% 48% 47% 47% 39% 36% 29% 28% 23% 11% 7% 4% 9/44 17/47 22/46 Experienced Naive Experienced Naive Placebo Duvakitug 240mg 45
Slide 48: Duvakitug Phase III study plans
Study anticipated to provide >1 year Step up innovation of exposure for all patients • Including both induction and maintenance studies Multiple doses to be tested Duvakitug UC and CD • Convenient, patient friendly sub- cutaneous administration Targeting ~1000 patients in each indication UC & CD stu
Slide 49: Duvakitug potential additional indications
Duvakitug potential additional indications Step up innovation Indication class Potential class extension ROCHE1 T2 Inflammation • Atopic Dermatitis • Asthma unlocks • COPD Lead • Eosinophilic esophagitis IL-4, IL-5 IL-13 indications MERCK1 Non T2 Inflammation SPYRE1 • Rheumatoid arthritis UC/CD as P
Slide 50: DARI: asthma patients and unmet need
DARI Step up innovation Teva Dry Powder Inhaler (DPI) 2023 U.S. SABA treated patients (in M) Illustrative example device GINA recommendation to switch to dual action inhaler Avoidable deaths per year in the U.S. caused by uncontrolled Asthma Of adult patients suffer from uncontrolled Asthma 10.6M1 S
Slide 51: DARI target product profile comparison
DARI Step up innovation Comparison between target DARI product profile and other asthma treatments on market DARI Current marketed ICS/SABA Traditional mono. treatment Follows GINA guideline 2 doses to be Dosing Monodose NA offered for flexibility Device Fewer steps Traditional device Traditional de
Slide 52: Emrusolmin: Multiple System Atrophy
Emrusolmin Step up innovation Multiple System Atrophy (MSA) • Characterized by autonomic failure, cerebellar ataxia and parkinsonism leading to death • 60% of patients wheelchair bound 5 years post- diagnostic • Mortality typically expected 6-12 years post-diagnostic Prevalence in the G7 countries G
Slide 53: Emrusolmin mechanism of action
Emrusolmin Step up innovation Emrusolmin's MoA against MSA Key MoA characteristics Small molecule, facilitated blood-brain barrier crossing Binds within β-strands cavities, specific to early-stage aggregates Binds to all soluble α-synuclein aggregates within neurons Alters all α-synuclein aggregates
Slide 54: Emrusolmin differentiation
Emrusolmin Step up innovation Only product addressing all 3 aggregates (free, membrane bound, intra & extracellular) + Ongoing enrollment in Ph II; full enrollment expected H2 26 Biology and efficacy demonstrated in animal models + Emrusolmin first entry into alpha- synuclein space with second asset
Slide 55: Anti-IL-15
Anti-IL-15 Step up innovation Unique binding site on IL-15 compared to competitors + Human antibody with highest affinity for IL-15 + Highly potent antibody targeting the core of the disease's mechanism with efficacy demonstrated + in pre-clinical studies Extended serum t1/2 = less frequent dosing +
Slide 56: Anti-IL-15 indications and prevalence
Anti IL-15 Step up innovation Prevalence1 • Celiac In Ph II ~5.2M Gastroenterology • Eosinophilic Esophagitis 1 in 40002 • Vitiligo In Ph I ~3.3M Dermatology • Alopecia Areata ~5.1M • Atopic Dermatitis ~70.5M • Sjogren’s Syndrome ~740K • Systemic Lupus Erythematosus ~650K Rheumatology • Myositis ~90
Slide 57: Anti-IL-15 preclinical and Phase Ib data
Anti-IL-15 Step up innovation Positive outcomes in animal models Suggested protection of the guts Extract from Celiac & Vitiligo trials Ph Ib exploratory study in Celiac Celiac Improved gut architecture in monkeys 75 TEV53408 150 mg On Gluten TEV-53408 Placebo diet treated Percent Change from Baseli
Slide 58: Anti-TSLP/IL-13
Anti-TSLP/IL-13 Step up innovation Adaptable profile based on concentration in environment IL-13 & TLSP levels IL-13 < TSLP IL-13 > TSLP IL-13 ≈ TSLP Clinical PoC in Asthma achieved in literature Comparable potency / Comparable potency / affinity as Tezepelumab affinity as Tralokinumab Discovered by
Slide 59: Next planned milestones
Step up innovation Asset Indication Next planned milestone olanzapine LAI Schizophrenia Submission (U.S.) H2 2025 TEV-'749 duvakitug Ulcerative Colitis / Crohn's TEV-'574 diseases Phase III potential initiation H2 2025 DARI Asthma Phase III results (event driven study) H2 2026 TEV-'248 emrusolmin Fu
Slide 60: Our R&D strategy: maximizing output for capital invested
Step up innovation Our R&D strategy: maximizing output for capital invested Promising late-stage pipeline with proven MoAs, blockbuster prospects and multiple pipeline in a product potential We are only getting started, readout acceleration will kick in post 2027 to continue growth long-term 60 | Mo
Slide 61: Sustain generics powerhouse
Sustain generics 4 powerhouse Executive Vice President, European Commercial 61 |
Slide 62: Right portfolio, commercial excellence, efficient manufacturing
Sustain generics powerhouse 1 2 3 Right portfolio Commercial & launch Efficient Manufacturing & pipeline excellence & Supply Multiple growth #1 Gx company in the Ongoing Operations segments: world Transformation further • Covering 60-80% of strengthening competitivity ~$175B small molecule LoEs Top
Slide 63: Our generics powerhouse today
Sustain generics powerhouse Our generics powerhouse today Delivering on multiple growing segments OTC EU & IM Gx EU & IM Leading commercial engine in Gx EU & IM to address $4.7B ~80% of LOEs Biosimilars gRevlimid $9.5B1 $3.3B Focused Gx U.S. targeting ~60% of high value LoEs Revenues in 2024 $0.4B A
Slide 64: Generics: loss of exclusivity value and launches
Generics Sustain generics powerhouse ~$175B LoE value, Teva focus on 60%-80%1 Launches to enable Gx growth (excl. gRevlimid) LoE in $B per year, '26-'31 forecast, U.S. & EU Teva Gx revenues trajectory (excl. gRevlimid) - Illustrative Low to mid-single digit growth 43 38 ~15 28 26 25 Complex Gx launc
Slide 65: Generics: quality submissions and market share
Generics Sustain generics powerhouse Quality submissions enabling faster approvals Outperforming industry regardless of launch order U.S. 1st cycle approvals in %; '22-’24 EU market share in % of $ value; '22-’23 33% 78% 24% 17% 18% 16% 16% 38% 20% 12% 7% 8% 2022 2023 2024 First and alone First with
Slide 66: Biosimilars
Biosimilars Sustain generics powerhouse ~2x +8 assets ~$55B in early-stage pipeline to sustain growth long-term LoE value covered2 ~$0.4B1 ~5 potential launches ~$20B LoE value covered2 10 in-line assets Select assets from portfolio Today Potential launches 2025-2027 Post 2027 Top 3 global portfolio
Slide 67: OTC
OTC Sustain generics powerhouse OTC share of revenue by segment 2024 Global brands Digestive Teva markets presence, Pain ~10% Diclo franchise 55+ focused on EU & IM VMS ~25% ~10% Local jewels Teva position in OTC ~15% Skin #9 worldwide ~25% CCR ~15% Other Synergies with Gx to win in pharmacies Teva
Slide 68: Established in Europe and growing IM markets
Sustain generics powerhouse Established in all major European countries Present in growing IM markets + Inherited from generics Top 3 Gx player in largest European markets Benefiting biosimilars pipeline #1 U.S. Gx company + Synergetic with OTC pharmacy portfolio Leader in multiple IM markets 68 | S
Slide 69: Simplifying manufacturing network to fewer than 30 sites
Sustain generics powerhouse Simplifying internal manufacturing network to less than 30 sites1 by 2027 to consolidate volumes & gain efficiencies Maximizing output with reduced headcount through Lean Management on 25+ sites & maintaining best-in-class service level > 98% Consolidating & renegotiating
Slide 70: Expected generics powerhouse revenue evolution
Sustain generics powerhouse Revenues Expected Gx powerhouse revenues evolution CAGR '24-'27 (Gx, OTC and biosimilars excl. FX impact) Gx EU & IM Stable Low-to- Illustrative (incl. mid-single • Predictable and steady growth gRevlimid) vs '24 digit • Leading position in multiple markets $9.5B $8.6B Gx
Slide 71: Leading, robust, cash-generating powerhouse
Sustain generics powerhouse We have a leading, robust and cash-generating powerhouse We are driving multiple growth drivers to compensate for gRevlimid by ‘27 Gx launches addressing a $175B LoE opportunity (incl. ~15 Complex Gx launches globally), biosimilars, OTC We are building leading manufacturi
Slide 72: Focus our business
5 Focus our business Executive Vice President, Chief Financial Officer 72 |
Slide 73: Delivered on commitments; accelerating shareholder value creation
Focus our business We delivered on past commitments We accelerate shareholder value creation through revenue growth, OP margin and FCF expansion We remain committed to our capital allocation strategy to fund growth 73 | FCF: Free Cash Flow; OP: Operating Profit
Slide 74: Returned to growth, healthy margins, reduced leverage
Focus our business 2019 2022 2024 -13.1% -4.2% 5.3% Returned to growth CAGR CAGR CAGR 2017-2019 2019-2022 2022-2024 Maintained healthy Investments 24.3% 27.7% 26.2% over '22-'24 operating profit margins set to pay off Brought down net 3.1x 5.3x 4.0x debt/EBITDA ratio Q1'25 Reduced net working 12% 16
Slide 75: Capital allocation strategy and key drivers
Focus our business Key drivers Low-single Continuing to grow our innovative franchise while Accelerated, sustained, 1 innovative growth digit growth 2024-'27 compensating for gRevlimid and sustaining mid- single digit growth in the long term OPM expansion to ~$700M Expanding OPM through innovative g
Slide 76: 2027 revenue outlook by business
1 Focus our business 2024 2027 outlook Double-digit AUSTEDO growth to achieve >$2.5B by 2027 sales (with IRA) AUSTEDO / AJOVY $2.2B growth Continued AJOVY growth New launches High double- olanzapine LAI launch building a comprehensive LAI $0.1B (UZEDY, olanzapine LAI) digit growth franchise Generics
Slide 77: 30% operating profit margin in 2027
2 Focus our business 3 principles 2 programs 30% OP margin in 2027 Transforming our Modernizing the 57-58% gross margin Operations & COGS base organization driven by shift to innovative Network, manufacturing and and transformation procurement Prioritizing resource allocation Optimizing OPEX and 27-
Slide 78: Operations transformation: financial implications
2 Focus our business Financial implications Simplifying internal manufacturing network to less than 30 sites1 by 2027 to consolidate • Program launched in 2024 with volumes & gain efficiencies initial but limited impact in 2025 • 2/3’s of savings realized by 2026 Maximizing output with reduced headc
Slide 79: Organizational effectiveness: financial implications
2 Focus our business Financial implications Optimize spend on Gx and harmonize country set-ups (-3 av. reduction in org. layers) • Program fully launched in Q1'25 • Achievement of run-rate OPEX savings in 2027 Drive efficiencies through digitization and • 2/3’s of savings in 2026 leverage central hu
Slide 80: OPEX split evolution and allocation
2 Focus our business OPEX split evolution S&M allocation R&D allocation % of total revenue ~15% ~16% ~6% 6-6.5% ~27% ~27-28% ~20-25% ~52% ~40-45% ~45% ~55% ~15% +1pp ~16% ~75-80% ~6% ~40% ~50-55% ~55% ~6% ~6% -1pp ~5% ~8% ~5% 2024 2027 2024 2027 2024 2027 S&M R&D G&A Gx, biosimilars and OTC Innovati
Slide 81: Growing operating profit and margin every year 2024-2027
2 Focus our business Growing OP$ & OPM every year 2024-2027 (in %) 2025 +330-440 bps 30% Growth & mix effect driving margin expansion 25.6 – 26.3% 26.7% 2026 (+125 - 200bps YoY) Accelerated transformation offsetting gRevlimid impact, innovative growth driving expansion 2027 (+125 - 250bps YoY) gRevl
Slide 82: FCF evolution 2022-2030
3 Focus our business FCF evolution 2022-’30 Drivers of 2027 FCF Illustrative FCF in $B >3.5 Innovative franchise as core FCF driver >2.7 ~$700M net savings from accelerated ~2.1 transformation Optimal balance sheet management: • Financial expenses reduction • Net working capital freed-up • Optimized
Slide 83: Debt reduction and lower financial expenses
3 Focus our business Continuous debt reduction since 2019… …Driving down financial expenses Net debt ($B) Net Debt / EBITDA Total net financial expenses (in $M) 932 24.9 5.3x Debt repaid between '24 and '27 400-600 15.0 3.1x Debt refinanced in May-25 and 2.0x moved towards '32 and '33 Debt maturing
Slide 84: Shortening cash conversion cycle
3 Focus our business Shortening cash conversion cycle to drive financial agility Improved inventory management leading to NWC (as a % of revenues) Cash Conversion Cycle (in Days) ~10% reduction of DIO 214 16% Negotiated favorable payment terms from vendors 12% Peers 164 160 6.6% < 150 140 < 5% <4% I
Slide 85: U.S. footprint and manufacturing advantages
Focus our business U.S. footprint and price Unique footprint Unique importing mix advantages for Innovative for Gx for API sourcing • U.S. manufacturing • Diversity of • Majority of imports from footprint for key Innovative manufacturing base Europe and Israel products (e.g., AUSTEDO) across U.S. an
Slide 86: Cash flow, FCF increase and capital priorities
Focus our business Better alignment of debt maturities with FCF Cash flow from operations 1 and reaching 2.0x leverage Increase FCF to >$2.7B by '27 Increase S&M to support Innovative franchise 2 growth + Continue investments in Innovative R&D and 3 potential value-creative Business Development Port
Slide 87: Financial outlook 2025 to 2030
Focus our business 2025 2026 2027 2030 & beyond Low-single Revenues $16.8B-$17.2B Flat1 vs. 2025 Mid-single digit CAGR digit growth OP margin 25.6%-26.7% +125-200bps 30% >30% Growing vs FCF $1.6B-$1.9B >$2.7B >$3.5B 2025 Net leverage ~2.5x - 2.7x ~2.0x - 2.2x 2x <2x S&M: Sales & Marketing; R&D: Rese
Slide 88: Accelerating growth and margin expansion toward 30%
Focus our business We are accelerating on growth and margin expansion with a clear path to 30% OPM in '27, driven by Innovative growth and ~$700M net savings Our strong execution on our balance sheet is boosting FCF and EPS with >$2.7B FCF by '27, while achieving 2.0x net leverage We accelerated sha
Slide 89: Conclusion
7 Conclusion President and Chief Executive Officer 89 |
Slide 90: Return to growth, accelerate growth, sustain growth
Sustain growth 2028+ AUSTEDO: >$3B peak sales1 AJOVY Accelerate growth 2025-2027 LAI Franchise (UZEDY and olanzapine LAI): $1.5-2B peak sales1 AUSTEDO: >$2.5B (in '27) Biosimilars Return to growth 2022-2024 AJOVY duvakitug: $2-5B peak sales1,2 LAI Franchise AUSTEDO: $1.7B DARI: $1B peak sales1 (UZED
Slide 91: Significant shareholder value increase in Accelerate phase and beyond
>$5B Innovative franchise 5 assets in Ph II / III with Continued OPM expansion by 2030 >$1B peak sales potential above 30% and balance sheet optimization = Significant shareholder value increase in Accelerate phase and beyond 91 | LAI: Long Acting Injectable; DARI: Dual-Action Asthma Rescue Inhaler;
Slide 92: Thank You
Thank You
Slide 93: Appendix contents
Innovative and biosimilars pipeline Detailed Innovative clinical trials Epidemiology data Executive Management 93 |
Slide 94: Appendix
teva APPENDIX i
Slide 95: Share of schizophrenia patients treated with atypical antipsychotics
Share of U.S. and EU schizophrenia patients treated with atypical antipsychotics (includes oral and LAI treatments) (2024) 16% Others 33% 11% 14% Oral clozapine 16% 7% 7% 12% Oral aripiprazole 7% Oral risperidone 14% 31% Oral olanzapine 17% LAI’s 13% 16% LAI: Long Acting Injectable 95 | Note: Share
Slide 96: Liquidity position as of March 31, 2025
Liquidity position as of March 31, 2025, in $B Liquidity Gross debt as of March 31, 2025: ~$16.5B Lower near-term maturity profile aligned with $2.25B debt tender* 0.35 1.55 1.8 0.35 0.7 1.3 2.5 2.0 2.1 2.0 1.9 1.6 1.7 1.0 0.8 0.4 0.5 2025 2026 2027 2028 2029 2030 2031 2032 2036 2046 C&CE RCF Debt m
Slide 97: Sanofi duvakitug collaboration key terms
Overall economics accelerated and enhanced by Key Terms 50/50 worldwide profit share $500 million in cash (Paid to Upfront signing • Worldwide 50:50 R&D cost & profit sharing in major Teva Q4 2023) markets • In other territories, selling party pays partner a royalty on Up to incremental $600 million
Slide 98: Currency exposure on Q1 2025 sales
Sales ($m) Currency exposure on Q1 2025 sales Argentine peso Q1 2025 Q1 2024 Revenue OP av. rate av. rate impact impact Canadian dollar <1% EUR/USD 1.05 1.09 $(26)M $(1)M 2% Others1 USD/Canadian 24% 1.44 1.35 $(6)M $(3)M dollar USD/Argentine 1,052.71 833.49 $(4)M $(1)M 52% Peso U.S. dollar Other $(2
Slide 99: Slide 99