Teva Beats Q3 Estimates and Raises Outlook for Austedo as Branded Portfolio Drives Growth

Teva Pharmaceutical Industries reported stronger-than-expected results for the third quarter, supported by continued momentum in its portfolio of innovative medicines. The company also raised its full-year revenue forecast for its leading drug Austedo, which treats movement disorders linked to neurological conditions.

Teva posted revenue of $4.5 billion, above analysts’ expectations of around $4.3 billion and up 3% from the same quarter last year. Growth was driven by the company’s branded products business in the United States, where sales of original medicines rose 33% to $830 million.

The improved product mix helped Teva deliver stronger profitability. Adjusted earnings came in at $0.78 per share, beating forecasts. The stock rose sharply in pre-market trading following the release of the results.

Austedo Continues to Lead Growth

Austedo recorded $618 million in sales in the quarter, representing 38% year-over-year growth.
On the back of that performance, Teva raised its annual revenue forecast for the drug to $2.0–$2.1 billion, an increase of $50–100 million from previous guidance.

Other key products also expanded:

• Ajovy (migraine treatment) generated $168 million, up 19%, and is expected to reach $630–$640 million in annual revenue.

• Uzedy, Teva’s newest long-acting schizophrenia therapy, reported $43 million for the quarter. The company expects $190–$200 million in 2025, its first full commercial year.

“Return to Growth Strategy Is Demonstrating Results”

“We continue to execute on our growth and innovation strategy,” said Teva CEO Richard Francis.

“Our innovative growth engines drove our eleventh consecutive quarter of growth. We remain on track to achieve our target of 30% non-GAAP operating margin and approximately $700 million in net savings for reinvestment.”

Teva has carried out a restructuring initiative over recent quarters, including reducing its global workforce by 8%.

Profitability Rebounds

Teva reported operating profit of $882 million, compared with a $51 million operating loss in the same period last year, which had included legal and impairment charges.
Excluding one-time items, operating income totaled $1.2 billion, or 28.9% of revenue.

Updated 2025 Guidance

Teva now forecasts:

• Total revenue: $16.8–$17.0 billion

• Non-GAAP operating profit: $4.4–$4.6 billion

• Free cash flow: $1.6–$1.9 billion

TAPI Divestment Process Resumes

The company also said that exclusive negotiations to sell TAPI, its active pharmaceutical ingredients subsidiary, have ended without agreement.
Teva will reopen the sale process, which has continued for more than a year as part of the company’s portfolio streamlining strategy.