Teva Pharmaceuticals reports branded drugs now drive sales growth, offsetting generic declines, with duvakitug poised as a potential blockbuster.
Teva Pharmaceutical Industries (TEVA) shares have climbed 85% over the past year, driven by a strategic shift from generics to branded drugs. First-quarter 2026 results show branded drugs like Austedo, Ajovy, and Uzedy achieving mid-double-digit annual sales growth, while generics now represent a minority of total sales.
Earnings per share (EPS) are projected to decline to $1.91-$2.11 in 2026 from $2.65 in 2025, largely due to the dilutive impact of the Emalex Biosciences acquisition. However, management expects a 30% increase in operating profit and adjusted EBITDA starting next year, supported by biosimilars and incremental sales growth.
The company’s pipeline drug, duvakitug, is seen as a key catalyst for future growth, potentially driving further share gains beyond 2026.