By Steven Scheer JERUSALEM (Reuters) -Teva Pharmaceutical Industries is able to absorb any potential tariffs imposed by the Trump administration, the company said on Wednesday as it reported higher-than-expected third-quarter profit that was boosted by strong sales of its trio of branded drugs. Shares in the world’s largest generic drugmaker jumped nearly 20% in New […]
Health
Teva Pharm profit tops estimates, says not worried by US tariffs
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By Steven Scheer
JERUSALEM (Reuters) -Teva Pharmaceutical Industries is able to absorb any potential tariffs imposed by the Trump administration, the company said on Wednesday as it reported higher-than-expected third-quarter profit that was boosted by strong sales of its trio of branded drugs.
Shares in the world’s largest generic drugmaker jumped nearly 20% in New York trading to a new year-high of $24.23.
Teva said it earned 78 cents per diluted share, excluding one-time items, in the July to September quarter, up from 69 cents a share a year earlier. Revenue was up 3% in dollar terms at $4.48 billion.
Analysts had forecast earnings of 67 cents per share ex-items for the Israel-based company on revenue of $4.34 billion, LSEG I/B/E/S data showed.
Branded drugs – mainly Huntington’s disease drug Austedo, migraine medicine Ajovy and schizophrenia treatment Uzedy – accounted for $830 million of revenue, a 33% rise over the third quarter of 2024. Teva is relying on these drugs to drive growth.
They have “allowed us to more consistently grow our level of revenue and also consistently grow our profitability and stability, and this also helps us continue to pay down our debt,” CEO Richard Francis told Reuters.
While not yet giving an outlook for 2026, Francis said next year should see growth in profitability despite the loss of an expected $1 billion in sales of a generic version of cancer and blood disorder drug Revlimid due to increased competition.
He noted that Teva will soon file with regulators for a long-acting version of its schizophrenia medicine olanzapine that Teva hopes to launch in the second half of next year.
Francis said with nine U.S. manufacturing plants and Austedo made in the U.S., Teva is well positioned to handle any U.S. tariffs. Two other innovative drugs are made in Israel but Francis said “we have the ability to absorb those anyway, within our supply network”.
Teva’s sales in the United States rose 12% although European sales fell 10% in the third quarter.
The group revised down its 2025 revenue estimate to $16.8-$17.0 billion from $16.8-$17.2 billion and updated its adjusted EPS forecast to $2.55-$2.65 from $2.50-$2.65.
(Reporting by Steven Scheer; Editing by Jan Harvey, Alexandra Hudson)