Teva Pharmaceutical Industries Limited Q2 FY2025 earnings call

• Pivot to growth since 2023 with 10th consecutive quarter of growth. - Innovative portfolio of AUSTEDO, UZEDY, AJOVY performing well. - Step-up innovation with late-stage pipeline including products with multiple indications. - Generics business stable with phasing and new launches. - Teva transformation programs well on track to deliver savings. - TAPI deal in advanced discussions.

Revenues were $4.2 billion, up 1%. AUSTEDO was just below $500 million, up 19%; UZEDY was $54 million, up 120%; AJOVY was $155 million, up 31%. Global Generics business declined 2% (excluding Japan divestiture). AUSTEDO grew 22% in the U.S., with XR fueling growth. UZEDY guidance raised to $190 million - $200 million. AJOVY guidance increased. Generics business had strong prior year comps and phasing; biosimilars had good sales momentum with launches in the U.S. and more to come.

• Confident to hit 2025 guidance. - Innovative portfolio overdelivering, raised guidance for AUSTEDO, UZEDY, AJOVY. - Generics business expected flat to low single digit growth. - Reaffirming 2025 outlook range for revenue, operating profit, adjusted EBITDA, increasing lower end of EPS range.

• Uncertainty around U.S. tariffs on pharmaceuticals, including details on Europe. - Ambiguity about inclusion and exclusion of certain generics in tariffs. - Uncertainty regarding the impact of tariffs on P&L and supply chains.

Q: Regarding AUSTEDO and IRA negotiation, color on discounts?

A: Not commenting as in middle of negotiations with CMS.

Q: Impact from Europe tariffs?

A: Team has mitigation plans, but ambiguity on details.

Q: AUSTEDO BID to XR conversion and tariff impact?

A: XR conversion playing out as expected, tariffs still uncertain.

Q: Duvakitug development, Phase IIb IBD data, olanzapine priority review?

A: Phase III to start, Phase II data in 2026, no priority review for olanzapine.

Q: Generic Revlimid impact on revenue guidance and UZEDY guidance conservativeness?

A: Revlimid phasing impact, UZEDY range based on product profile and market entry.

Q: Generics business read across to 2026 and beyond and gross margin expectations?

A: Confident in generics long-term trajectory, gross margin expected to be above midpoint.

Q: EBITDA margin uptick, cost reduction opportunities, capital allocation?

A: EBITDA margin sustainable, cost reduction continuous, capital allocation includes BD and shareholder return.

Q: SELARSDI product rollout?

A: Biosimilar rollout varies, but confident in portfolio play with multiple launches.