Harel Bets Big on Teva Pharmaceutical by Purchasing 4.3 Million Shares

What happened

According to a Securities and Exchange Commission (SEC) filing dated October 29, 2025, Harel Insurance Investments & Financial Services Ltd. increased its stake in Teva Pharmaceutical Industries Limited (NYSE:TEVA) by 4.3 million shares. The estimated value of the new shares purchased was $75.64 million, based on the average price for the quarter. The fund held 37.7 million Teva shares at quarter-end.

What else to know

Harel Insurance Investments & Financial Services Ltd. increased its Teva holding to 6.84% of its reportable U.S. equity assets under management as of Q3 2025.

Top holdings after the filing:

TEVA: $761.46 million (6.8% of AUM) as of Q3 2025.

XLF: $614.13 million (5.53% of AUM) as of 2025-09-30.

XLK: $605.82 million (5.45% of AUM) as of 2025-09-30.

VGT: $552.31 million (4.97% of AUM) as of 2025-09-30.

NVMI: $456.67 million (4.1% of AUM) as of Q3 2025.

As of October 28, 2025, shares were priced at $19.78, up 7.68% over the past year; this trailed the S&P 500 index's performance by 8.14 percentage points over the same period.

Company Overview

Company Snapshot

Teva Pharmaceutical Industries Limited develops, manufactures, and markets generic medicines, specialty pharmaceuticals, and biopharmaceutical products, with a portfolio including treatments for central nervous system disorders, respiratory conditions, pain, and oncology.

The company generates revenue primarily through the sale of generic and specialty drugs, as well as active pharmaceutical ingredients, leveraging global distribution networks and strategic collaborations for product development and commercialization.

Teva serves a broad customer base, including healthcare providers, pharmacies, hospitals, and wholesalers across North America, Europe, and international markets.

Teva Pharmaceutical Industries Limited is a global leader in the development and distribution of generic and specialty medicines, operating at scale with approximately 37,000 employees and a significant presence in major pharmaceutical markets. The company's strategy emphasizes a diversified product pipeline and partnerships to enhance its reach and innovation capabilities. Teva's competitive advantage stems from its broad portfolio and global presence.

Foolish take

Don't let its unassuming name confuse you. Harel Insurance Investments & Financial Services has been performing like a technology-focused fund in recent years. During the five-year period that ended Sep. 30, 2025, Harel's portfolio grew by 280% to reach an impressive $11 billion.

Despite both being headquartered in Israel, Harel's investment in Teva Pharmaceutical was less than $250,000 at the end of 2024. This year, it's been buying shares of the generic drug manufacturer hand over fist.

This year, Teva expects total revenue to climb to $17 billion at the midpoint of management's guided range. That would be a gain of about 3% year over year. While revenue growth is expected to be tremendous, earnings could rise even faster thanks to growing sales of branded drugs versus the low-margin generic drugs the company is famous for. For example, sales of Austedo are expected to climb by 18% to 21% in 2025 and exceed $2 billion in sales.

Glossary

Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or institution.
Reportable U.S. Equity Assets: U.S. stock holdings that an institutional investor must disclose in regulatory filings.
Quarter (Q3 2025): The third three-month period of a company's fiscal year, here referring to July–September 2025.
Fund Holding: A specific investment or asset owned by a mutual fund, pension fund, or other investment vehicle.
Stake: The ownership interest or share an investor holds in a company.
Generic Medicines: Drugs equivalent to brand-name products in dosage and effectiveness, typically sold at lower prices after patents expire.
Specialty Pharmaceuticals: Medications designed to treat complex, chronic, or rare health conditions, often requiring special handling or administration.
Biopharmaceutical Products: Medicines produced using biological sources, such as living cells or organisms, rather than traditional chemical synthesis.
Active Pharmaceutical Ingredients (APIs): The biologically active components in a drug that produce its intended effects.
Portfolio: The collection of investments or assets held by an individual or institution.
TTM: The 12-month period ending with the most recent quarterly report.
Strategic Collaborations: Partnerships between companies to jointly develop, manufacture, or commercialize products or technologies.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.