Teva Pharmaceutical Industries Ltd. (TEVA) Business Profile

What it does

Teva Pharmaceutical Industries is a biopharmaceutical company that develops, manufactures and sells medicines worldwide. It was founded in 1944, is headquartered in Ramat HaHayal, Israel, and is led by President and Chief Executive Officer Richard Francis.

A substantial part of its business is generic medicines: versions of established drugs that have the same chemical and therapeutic properties as their brand-name equivalents. Teva also sells biosimilars, which are highly similar versions of biologic medicines made from living cells or organisms. Its portfolio includes over-the-counter products and medicines developed under its own brands.

The branded portfolio focuses on the central nervous system, including treatments for movement disorders, migraine, schizophrenia and multiple sclerosis. Products include AUSTEDO for certain movement disorders, AJOVY for migraine prevention and UZEDY for schizophrenia and bipolar 1 disorder. Teva also sells medicines for respiratory conditions and cancer.

Its customers include drug wholesalers, pharmacy chains, distributors, hospitals and physician offices. In the United States, its Anda business distributes medicines made by Teva and other manufacturers. Teva also sells active pharmaceutical ingredients—the substances in medicines that produce their effects—to other companies, provides contract manufacturing and licenses products to other drugmakers.

Teva operates through United States, Europe and International Markets segments. Each region manages the products it sells locally. At the end of 2025, its workforce consisted of 33,950 employees.

How it makes money

Teva earns revenue primarily by selling generic, biosimilar, innovative and over-the-counter medicines. Its three geographic segments manage their local portfolios, while other activities include sales of active ingredients, contract manufacturing and product licensing through its Medis affiliate.

Teva reported $9,186 million in United States segment revenue in 2025; total company revenue was approximately $4.4 billion in Q3 2026.

Generic medicines generally cost less than the original branded drugs. In markets where pharmacists can substitute a generic for a brand-name medicine, Teva’s relationships with pharmacy chains, distributors and insurers are important. In branded-generic markets, it promotes products to build awareness among physicians and consumers. Generic prices face competition as more versions of a medicine enter the market.

Teva also earns revenue from its branded treatments as patients receive their medicines over time. AUSTEDO, AJOVY and UZEDY are among its key products. Teva also received development milestone payments connected with the start of Phase 3 studies for duvakitug.

Anda distributes medicines from Teva and third-party manufacturers to U.S. pharmacies and healthcare providers. Teva moved Anda’s reporting from the United States segment to Other Activities effective January 1, 2026. Biosimilar collaborations can divide responsibilities: for EPYSQLI, Samsung Bioepis develops, registers, manufactures and supplies the medicine, while Teva commercializes it in the United States.

The product mix affects profitability. In Q3 2026, Teva reported lower generic revenue, largely from generic REVLIMID, alongside growth in AUSTEDO, AJOVY and UZEDY. Teva attributed its higher non-GAAP gross margin partly to the product mix.

Customers and how it sells

Teva is headquartered in Israel and sells medicines across the United States, Europe and other international markets. Its Europe segment includes the European Union, the United Kingdom and certain other European countries. International Markets includes countries outside its U.S. and Europe segments, including Canada, Israel, Russia and countries in Latin America.

Most U.S. generic sales are made to retail drug chains, mail-order distributors and wholesalers. Anda supplies independent and chain pharmacies, hospitals and physician offices with medicines and over-the-counter products. Teva’s innovative medicines business also works with healthcare professionals and payers, and offers patient-support programs that can help with treatment adherence, delivery and reimbursement.

The route to patients differs by market. In countries where pharmacists can substitute generic medicines, manufacturers’ relationships with pharmacy chains, distributors and health insurers are important. In branded-generic markets, Teva uses a sales force to promote products and build brand awareness. Some countries combine elements of both approaches.

The United States is Teva’s most significant market for innovative medicines. In Europe, Teva says its total generic revenues are not substantially dependent on any single country. Its international segment includes both highly regulated generic markets and markets where branded generics are common. Teva also sells active pharmaceutical ingredients and licenses products to other pharmaceutical companies.

Suppliers and costs

Teva operates 33 finished dosage and packaging pharmaceutical plants in 21 countries. It makes medicines in forms including tablets, sterile injectables, inhalers and patches, and also uses external contract manufacturers. Most of its production capacity is in North America, Europe, Latin America, India and Israel.

The company produces some of its own active pharmaceutical ingredients and buys others from suppliers in Europe, Asia and the Americas. Its policy is to maintain multiple sources where possible, although regulatory and other requirements can limit that ability. For some products, a raw material or supply comes from the only available source or the only approved source. Teva uses inventory management and alternative sourcing where possible to mitigate supply risks.

Costs include manufacturing, research and development, sales and marketing, and administration. In the United States segment, Teva’s selling and marketing expenses rose in 2025, mainly because of promotion for AUSTEDO and UZEDY. Its transformation programs include changes to ways of working, headcount reductions and external spending; Teva expects the programs to generate ~$700 million of net savings through 2027.

Teva intends to divest its active-ingredient business. Exclusive discussions with a selected buyer ended in 2025, and the company began a renewed sale process.

Competitive position

Teva competes with generic and branded drugmakers, as well as companies selling biosimilars and alternative treatments. Generic competition includes additional versions of the same medicine, authorized generics and newer branded medicines. In Europe, competition also involves pricing, quality, customer service and the relevance of a company’s portfolio.

For the cancer medicine BENDEKA, Teva faces direct competition from Eagle Pharmaceuticals’ Belrapzo and Azurity Pharmaceuticals’ Vivimusta. Teva licensed BENDEKA from Eagle, which also sells its own competing bendamustine product. AUSTEDO is protected by U.S. patents, but Teva has agreements allowing Lupin and Aurobindo to sell generic products beginning in April 2033, or earlier under certain circumstances.

Teva says AJOVY and UZEDY face competition from multiple products. COPAXONE also faces generic versions and other multiple sclerosis treatments. In biosimilars, Teva expects increased competition and identifies price erosion, intellectual-property challenges and the pace of adoption as factors affecting commercialization.

Our reading: Teva’s manufacturing network, research capabilities and geographic reach provide a meaningful position in generics, but additional entrants can still pressure prices and margins. Our reading: Patents and specialized commercial capabilities support its branded medicines, though those protections are product-specific and do not prevent competition from alternative therapies. Our reading: Its biosimilar partnerships add products without requiring Teva to perform every development and manufacturing task, but litigation and competing launches limit the strength of that advantage.

Growth opportunities

Teva’s growth strategy combines expansion of its innovative medicines with new generic and biosimilar products. AUSTEDO, AJOVY and UZEDY are key products in that strategy. In Q3 2026, Teva reported global revenue of $751 million for AUSTEDO, $269 million for AJOVY and $85 million for UZEDY.

Teva received FDA approval for WELTRUZA, an injectable treatment for schizophrenia. The company expects its launch to require work on payer access, including Medicaid formularies. It also acquired BXCL501 from BioXcel; the asset is under review for at-home treatment of acute agitation associated with schizophrenia or bipolar disorder.

The research pipeline includes duvakitug, which Teva and Sanofi are developing for inflammatory diseases. Their Phase 3 programs for ulcerative colitis and Crohn’s disease began in 2025. Teva also submitted ecopipam for Tourette syndrome and expects a regulatory decision. It discontinued its phase II emrusolmin study after an interim futility analysis; Teva said there were no safety concerns.

Biosimilars are another part of the plan. Teva had 15 products on the market and 16 more in its pipeline as of Q3 2026. It has also expanded its Samsung Bioepis partnership with two FDA-approved biosimilars. In generics, launches of new versions of established medicines are intended to add products to the portfolio, although timing can depend on approvals, patents and litigation.

Teva expects its transformation programs and portfolio changes to contribute to cost savings and a different product mix.

Structural risks

• Generic competition and pricing: Generic medicines make up a significant portion of Teva’s business. Additional versions of the same product can pressure prices and margins, while biosimilars face competition, potential price erosion and intellectual-property challenges.
• Dependence on branded products: Teva’s future success depends in part on growing AUSTEDO and AUSTEDO XR. AJOVY faces competing migraine therapies, and UZEDY entered a market with established injectable products. Revised U.S. government prices for eligible Medicare patients taking AUSTEDO and AUSTEDO XR take effect January 1, 2027.
• Debt and financing: Teva has significant debt outstanding, requiring interest and principal payments and compliance with covenants that can restrict borrowing and other transactions.
• Regulation and litigation: Drug approvals, manufacturing standards and patent disputes affect whether and when Teva can sell products. Lawsuits, claims and government investigations could delay commercialization or disrupt operations.
• Supply and international exposure: Some materials come from a sole available or approved source. Supply-chain disruptions can delay production and distribution, while currency fluctuations can affect revenue, profit and cash flow.

Bottom line

Our reading

Teva combines a geographically spread generics operation with branded medicines and a growing biosimilar portfolio [item1, call_prepared]. Its opportunity rests on developing and commercializing newer products while managing generic price erosion; its exposures include debt, patent disputes, supply constraints and changing prices for AUSTEDO [item1, item1a, item7].