Teva Pharmaceutical: 3 Numbers That Explain This Generic-Drug Turnaround
Key Points
Forecasts call for Teva's branded drug portfolio to bring it $3.7 billion in revenue next year.
At the same time, as it pivots toward high-margin drug products, Teva continues to reduce debt and improve its credit rating.
With management guiding toward a branded pivot that could eventually generate over $10 billion annually, there may be far more runway for Teva's turnaround rally.
- 10 stocks we like better than Teva Pharmaceutical Industries ›
Teva Pharmaceuticals (NYSE: TEVA) recently hit a new 52-week high of $40.79 per share and has surged 110% in the last year. It's the drugmaker's turnaround, fueled by a pivot from generic to branded products, driving this mega rally among pharmaceutical stocks.
To some, it still doesn't make sense that Teva surged so far, so fast, given that the company has yet to see a big jump in revenue or earnings. However, a closer look at three company metrics makes it clear why investors continue to bid shares higher.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
$3.7 billion: forecasted sales for Teva's new drugs
Teva's "Innovative Portfolio" of branded drugs so far consists of three products: Austedo, Uzedy, and Ajovy. During Q2 2026, these three products combined to generate just over $1 billion in revenue. For the full year 2026, management anticipates sales for the three totaling $3.7 billion.
This is only around 22% of Teva's estimated 2026 sales. However, management guides for further "Innovative Portfolio" growth, to the point where it has a significant impact on company-wide gross margins.
$12.9 billion: Teva's outstanding debt position
As of June 30, 2026, Teva's net outstanding debt was $12.9 billion. Compare that to the end of 2022, when Teva's net debt totaled $18.4 billion.
The company also recently received a credit rating upgrade, which raised its long-term issuer rating from BB- to BBB-. With its debt moving from "junk" to investment-grade status, Teva is now well positioned to refinance its remaining debt at lower interest rates.
$10 billion: the potential for Teva's drug pipeline
Between the company's existing pipeline and the candidates gained through its recent acquisition of Emalex Biosciences, the company anticipates peak annual sales of at least $10 billion from its late-stage pipeline portfolio.
Just between 2026 and 2027, analysts expect the company's earnings to grow 40.7%, from $2.16 to $3.04 per share. Considering the prospect of even greater earnings growth in subsequent years, shares arguably appear cheap at just 12.9 times next year's forecast earnings.
Should you buy stock in Teva Pharmaceutical Industries right now?
Before you buy stock in Teva Pharmaceutical Industries, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Teva Pharmaceutical Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 29, 2026.
Thomas Niel 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.
Recommended Articles
