"Building on the hard work we’ve put in at Teva over the last few years, the future looks exceptionally promising. It’s a great time to take a fresh look at Teva, whether you’re an analyst, an investor, or an employee," Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) CEO Richard Francis told "Globes" after the company’s R&D Day in New York.
During the R&D Day, Teva provided updates on its innovative drug pipeline and announced an increase in its revenue target for innovative medicines by 2030, raising it from about $5 billion to a range of $6-7 billion. In his presentation, Francis illustrated the growth in Teva’s revenue from branded products:
Rising from $1.3 billion (9% of total revenue) in 2022 to a projected $3.77-3.92 billion this year, representing about 20% of total revenue. Looking ahead to 2030, the new target is $6-7 billion, with Teva anticipating subsequent double-digit growth. By 2030, this revenue is seen accounting for more than 25% of the company’s total revenue.
This comparison is measured against 2022, the year prior to Francis assuming the role of CEO and the launch of Teva’s "Pivot to Growth" strategy, which focuses on the branded products segment. According to the presentation, while Teva had two branded drugs on the market in 2022, it now has four, with the potential to reach nine by 2030. Free cash flow is projected to exceed $3.5 billion by 2030, compared with some $2 billion this year.
"The idea behind the R&D Day we held was to help people understand the progress Teva has made since we launched our 'Pivot to Growth' strategy," explains Francis. "That is what we did today. We showcased the company’s transformation, both in terms of revenue and our product pipeline. Teva has evolved from a company focused on generics into a biopharma company. I know some people found it hard to believe this would happen, so we wanted to prove it and demonstrate our robust pipeline, highlight some of our strongest assets, and show people the depth and quality of that pipeline, as well as the commercial capabilities we possess to maximize its potential." He stresses that under this strategy, Teva has come a long way, but this is only the starts.
What feedback did you receive from investors and analysts who attended the R&D Day?
"The feedback from everyone I spoke with was very positive. Some were pleasantly surprised by the quality of the products and complimented us on the work we’ve done so far. When I joined Teva (in early 2023), we stated what we intended to do and people were somewhat skeptical, until we actually delivered. We still have more to prove to the market, but today there is greater belief."
Investors were burned in the past
In a presentation during R&D Day, Teva CFO Eli Kalif showed a comparison between Teva and the average for large biopharma companies. He demonstrated that, despite having one of the industry’s highest growth rates for branded products, Teva’s stock trades at a discount of about 15% compared with its peers.
Francis does not dispute the methodology used by investors and analysts to value companies, but he notes, "Part of this stems from Teva’s past challenges, which still cast a bit of a shadow over the stock. People want to believe that everything we say is achievable, but there is still some hesitation. Some investors have been 'burned' in the past, so we need to prove ourselves to the market time and again. It used to frustrate me, but now I’m fine with it, because I know we will prove it.
"Someone once told me. If you look strictly at the data, stripping away the name Teva, the valuation would be much higher. I believe that in the future, this will change. The Teva name - the brand - will become synonymous with quality. Quality medicine, quality execution - a company that does exactly what it says it will do. We are on that path, and to me, that represents an opportunity."
On branded drugs currently in development, can we expect more deals similar to the financing agreement with Royalty Pharma, aimed at accelerating the development of the treatment for vitiligo?
"Potentially, yes. Our guiding principle is to identify an excellent, high-performing product and bring it to market as quickly as possible. Partners can help us accelerate this pace or expand into additional medical indications. Furthermore, firms like Royalty Pharma invest exclusively in top-tier assets. Having such a partner serves as a strong endorsement, lending added credibility to the product. At the same time, Teva’s financial strength is improving with every passing quarter, which grants us greater capacity to act independently."
What about further acquisitions, perhaps on a larger scale than the Emalex deal?
"We are constantly evaluating external opportunities. With our cash flow improving dramatically, we are well-positioned to invest both internally and by pursuing larger business development opportunities. The key questions are always whether the product is the right fit and whether the valuation is appropriate. We remain very disciplined in this regard."
What about Teva’s generics business? Given the anticipated growth in the innovative segment, won’t the generics division become a drag on overall growth rates and valuation multiples?
"Absolutely not - far from it. I want to be very clear on this point: I am extremely proud of our generics and biosimilars business. We invest heavily in it, and generics remain a foundational pillar of our strategy. Innovation certainly receives a great deal of attention due to the need for investment. It’s a bit like a young child in its early years, and it’s discussed frequently because it’s exciting. However, we take great pride in our generics and biosimilars, and we will be looking toward growth in this sector."
Published by Globes, Israel business news - en.globes.co.il - on November 12, 2026.
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