Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries Ltd. (NYSE:TEVA), on Wednesday agreed to acquire Emalex Biosciences, including its lead asset, ecopipam.
Teva To Acquire Emalex, Expanding Late-Stage Pipeline
Teva will pay $700 million, and Emalex’s shareholders will be eligible to receive up to $200 million based on future commercial milestones and royalties on global net sales of ecopipam, subject to regulatory approval.
“This is a prime example of our Pivot to Growth strategy in action, advancing focused, capital-efficient agreements that expand our late-stage innovative pipeline and commercial portfolio,” said Teva CEO Richard Francis.
The transaction is currently anticipated to close by the third quarter of 2026.
Teva will fund the upfront payment using cash on hand. The company intends to mitigate the near-term margin dilutive impact of this acquisition and remains on track to meet its 2027 financial targets.
First-Quarter Earnings Beat Expectations
Teva reported first-quarter adjusted earnings of 53 cents, beating the consensus of 48 cents.
Sales increased 2% (-3% in local currency) to $3.98 billion, beating the Wall Street consensus of $3.81 billion.
The generic drug makers‘ key brands delivered strong performance, with Austedo, Ajovy, and Uzedy revenues collectively growing by 41% year over year in local currency to $838 million.
Based on the 2026 Outlook, the company said these products are expected to generate an annual 4-year compound growth rate of around 38% and comprise around 21% of Teva’s total revenues.
Margin Targets And Cost Savings Plan
Teva reaffirms its fiscal 2026 adjusted earnings of $2.57-$2.77 per share versus the consensus of $2.67.
The company also reiterated its fiscal 2026 sales guidance of $16.4 billion-$16.8 billion compared to the consensus of $16.57 billion.
It expects to achieve 30% non-GAAP operating income margin and is on track to deliver around $700 million of net savings by 2027.
Share Buyback Plan Under Consideration
Teva’s board instructed management to plan for a share repurchase program.
Execution will be subject to certain factors, such as market conditions, share price, and other opportunities to invest capital for growth in alignment with Teva’s Pivot to Growth strategy.
TEVA Stock Price Activity: Teva shares were up 11.4% at $35.14 at the time of publication on Wednesday, according to Benzinga Pro data.
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