Israel's Teva Q3 revenue falls 2% as generics decline

Overview

• Israel pharma firm's Q3 revenue fell 2% yr/yr, as lower generics offset innovative brand growth

• Adjusted EPS for Q3 rose 10% yr/yr

• Innovative brands revenue grew 33% yr/yr, partially offsetting generics decline

Outlook

• Teva sees 2026 revenues of $16.7–$17.0 bln

• Company expects 2026 non-GAAP diluted EPS of $1.92–$2.11

• Teva raises 2026 revenue outlooks for AUSTEDO, AJOVY and UZEDY

Result Drivers

• GENERIC COMPETITION - Co said lower generics revenue was driven by increased competition for lenalidomide capsules in the U.S.

• INNOVATIVE BRANDS GROWTH - Co said growth in AUSTEDO, AJOVY and UZEDY helped offset generics decline

• PRODUCT MIX - Co said higher gross profit margin was mainly due to increased sales of innovative products

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the pharmaceuticals peer group is "buy."

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Nov 2 - Teva to discontinue mid-stage neurodegenerative disorder study

• Nov 3 - BioNTech's Q3 revenue falls on lower COVID-19 vaccine demand

• Nov 3 - Pfizer Q3 revenue beats estimates on new launches; raises guidance

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)