Teva Pharmaceutical Industries Targets Up to $7 Billion in Innovative Drug Revenue by 2030

Key Points

• Teva targets $6 billion to $7 billion in innovative-drug revenue by 2030, up from about $1.3 billion in 2022; its 2026 forecast is $3.8 billion to $3.92 billion.
• The company expects innovative medicines to boost gross margin above 60% by 2030, from about 55% currently, and projects more than $11 billion in cumulative free cash flow over the next four years.
• Teva is advancing a pipeline across neuroscience, immunology and cancer, with key milestones including 2027 results and a planned filing for its asthma rescue inhaler. Revenue and pipeline projections depend on clinical, regulatory and commercial outcomes.

Teva Pharmaceutical Industries NYSE: TEVA outlined plans to grow its innovative medicines business and advance a pipeline spanning neuroscience, immunology and cancer treatments at its first R&D Day.

President and CEO Richard Francis said Teva expects $3.8 billion to $3.92 billion in innovative revenue for 2026, up from approximately $1.3 billion in 2022. The company is targeting $6 billion to $7 billion in innovative revenue by 2030 as it seeks to expand beyond its generics roots.

Francis said the pipeline has potential peak sales of more than $10 billion. The projections depend on clinical development, regulatory approvals and commercial performance, and the company cautioned that its forward-looking statements are subject to risks and uncertainties.

Financial targets and existing medicines

Francis said Teva expects AUSTEDO sales of $2.5 billion in 2026, a year ahead of its prior schedule, and believes the product can generate more than $3 billion in annual sales. He also projected AJOVY sales of more than $900 million this year and eventually more than $1 billion.

Teva has recently launched WELTRUZA, a long-acting injectable olanzapine treatment, alongside its existing long-acting injectable UZEDY. Francis said the company expects to have nine innovative assets on the market in 2030, each with potential annual sales exceeding $1 billion.

CFO Eli Kalif said the shift toward innovative medicines is expected to lift gross margin above 60% by 2030, from approximately 55% currently. He also projected more than $11 billion in cumulative free cash flow over the next four years. Francis said annual free cash flow could exceed $3.5 billion in 2030.

Kalif said Teva plans to maintain its goal of reaching a net debt-to-EBITDA ratio of two times by the end of 2027. The company intends to fund research, business development and growth while retaining the option of share buybacks when appropriate.

Clinical programs and upcoming milestones

Teva is pursuing multiple uses for its anti-IL-15 antibody, including vitiligo, celiac disease and alopecia. David Gardiner, senior vice president and head of innovative medicines and clinical development, described results from two vitiligo trial patients who received two quarterly doses. He said Teva is combining two pivotal trials under one protocol and is targeting a U.S. filing in 2031.

In a celiac disease study, Gardiner said a single dose of anti-IL-15 prevented the loss of intestinal villus height during a six-week gluten challenge and that results correlated with improved symptoms. Chief Medical Officer Eric Hughes said symptom improvement in the small study was not statistically significant. Teva plans to start another celiac study in the second half of 2027, subject to agreement on endpoints.

For duvakitug, an antibody being developed with Sanofi, Teva highlighted Phase II results in ulcerative colitis and Crohn’s disease. The company is also starting a study in Crohn’s patients with intestinal narrowing and has enrolled the first patient in a hidradenitis suppurativa trial.

Gardiner said the Phase III program for Teva’s dual-action rescue inhaler, or DARI, for asthma is fully enrolled. The company expects top-line results and a regulatory submission in 2027, with the filing targeted for the second half of the year.

Early cancer data and launch opportunities

Chief Scientific Officer Steffen Nock presented preliminary Phase I data for Teva’s PD-1/IL-2 cancer candidate. Among the first 25 patients evaluated, he reported one complete response and six partial responses. The study is ongoing, and Nock said most available data came from lower dose levels.

Teva also discussed two earlier antibody programs: a TL1A/IL-23 candidate for inflammatory disease and a TSLP/IL-13 candidate initially aimed at asthma. Hughes said the TL1A/IL-23 program remains preclinical, while an application to begin clinical testing of TSLP/IL-13 is being submitted.

In neuroscience, Teva is seeking approval of ecopipam for Tourette syndrome and hopes for a decision in the first half of 2027. During the question-and-answer session, Francis said the company is using $1 billion as a starting point for peak sales expectations but is still assessing pricing and market access.

Teva also sees an opportunity for dexmedetomidine as a potential at-home treatment for acute agitation associated with schizophrenia and bipolar disorder. Hughes said the application has been submitted, while executives cautioned that the commercial opportunity will depend in part on the eventual regulatory label.

About Teva Pharmaceutical Industries (NYSE:TEVA)

Teva Pharmaceutical Industries is a global pharmaceutical company that develops, manufactures and markets generic medicines, specialty medicines and biosimilars. Its portfolio spans treatments for conditions including neurological disorders, respiratory diseases and cancer, alongside a broad range of generic medicines across therapeutic areas. Founded in Jerusalem in 1901, Teva has grown from a regional pharmaceutical business into an international company. It serves patients and healthcare providers in markets around the world, including North America, Europe and other regions.

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