India Pharma Outlook Team | Wednesday, 04 November 2026
Teva Pharmaceutical Industries is finding stronger growth in its branded medicines business as it navigates continued pressure in the generics market.
The Israeli drugmaker reported third-quarter profit above analyst expectations and raised its 2026 revenue outlook, reflecting higher sales projections for three key medicines.
While overall revenue declined during the quarter, growing demand for Austedo, Ajovy and Uzedy strengthened its earnings performance.
The results offer a closer look at Teva's evolving growth strategy, which increasingly depends on innovative treatments alongside its established generics business.
Teva reported adjusted earnings of USD 0.86 per share for the July–September quarter, compared with USD 0.78 a year earlier. The result exceeded analysts' expectations of USD 0.72 per share. However, revenue declined 2% year-on-year to USD 4.4 billion as generic drug sales weakened.
The company raised its full-year revenue forecast to USD 16.7 billion–USD 17 billion from its earlier range of USD 16.5 billion–USD 16.85 billion. It also expects adjusted earnings per share of USD 1.92–USD 2.11 in 2026. The revised guidance reflects stronger sales expectations for its branded portfolio rather than a broad-based recovery across its businesses.
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Teva's three leading branded medicines delivered substantial growth during the quarter, helping offset weaker generic drug sales. Austedo, Ajovy and Uzedy collectively strengthened the company's revenue outlook.
These performances demonstrate how branded medicines increasingly support Teva's growth strategy. The company expects stronger demand for these treatments to contribute meaningfully to its financial performance.
Teva's next growth phase will depend on maintaining momentum across its innovative portfolio while rebuilding strength in generics and biosimilars. CEO Richard Francis expects branded medicines to drive growth in 2027, while the company's biosimilar pipeline could strengthen its generics business.
The recently launched schizophrenia treatment Weltruza offers another potential growth opportunity. Francis expects the drug to generate meaningful revenue from the second half of 2027 and reach peak sales of up to USD 2 billion.
Teva's strategy therefore extends beyond its current earnings performance. Its ability to expand innovative treatments and commercialize biosimilars will determine whether the company can sustain stronger growth and profitability.
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