Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) stock is trading higher on Wednesday after the company reported second-quarter earnings and a direct U.S. listing.
• Teva Pharmaceutical Indus shares are powering higher. What’s behind TEVA gains?
NYSE Listing Transition
Teva announces the replacement of its American Depositary Share (ADS) program with the direct listing of its ordinary shares on the New York Stock Exchange (NYSE).
ADSs will be exchanged on a one-for-one basis for ordinary shares, which commence trading on the NYSE on Monday, Sept. 14.
The transition aims to broaden Teva’s shareholder base, support its potential inclusion in leading indices, and optimize cost-of-capital.
Key Brands Offset Generic Drug Weakness
The company reported adjusted earnings of two cents, missing the consensus of 25 cents.
Sales decreased 1% (-3% in local currency) to $4.142 billion, beating the Wall Street consensus of $4.047 billion. The decrease was due to lower revenues from generic products, primarily lenalidomide capsules.
The generic drug makers‘ key brands Austedo, Ajovy and Uzedy collectively grew 43% year over year in local currency to over $1 billion in revenues. Each brand grew at least 40% year over year in the quarter.
Generics global revenues were lower in the quarter mainly due to lower revenues from lenalidomide capsules (a generic version of Revlimid) in the U.S.; the biosimilars portfolio performed strongly and is on track to deliver $800 million in revenues by 2027.
The company, in its earnings conference call, said it is on track to meet its 2027 financial growth targets, with stable revenues despite challenges in the generics sector, and expects continued margin expansion driven by its innovative portfolio.
2026 Outlook and Pipeline
Teva expects fiscal 2026 adjusted earnings of $1.91-$2.11, including (66 cents) per share of 2026 Emalex expenses, unchanged from prior guidance.
The company marginally raised its 2026 sales guidance from $16.40 billion-$16.80 billion to $16.50 billion-$16.85 billion compared to the consensus of $16.618 billion.
Teva raised its 2026 revenue outlook for its key innovative brands, and now expects combined 2026 revenue of ~$3.7 billion, reflecting around 17% year-over-year growth at the midpoint.
The company has a robust pipeline with potential launches over the next five years, including olanzapine and ecopipam, and is increasing its biosimilars portfolio with 15 products currently in the market.
TEVA Stock Price Activity: Teva Pharmaceutical shares were up 9.25% at $34.60 at the time of publication on Wednesday, according to Benzinga Pro data.
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