Teva Stock is Rebounding. Its Drug Pipeline Holds the Key to Growth.

Dow Jones07-29

Teva Pharmaceutical Industries stock has continued to rebound from a tariff threat last week on generic drugs. When the company reports earnings Wednesday, it'll be another reminder to investors that Teva is more than generics now.

Teva's portfolio of branded drugs -- like Austedo for symptoms of Huntington's disease, and Ajovy for migraines -- has sparked interest on Wall Street. So has the company's pipeline of treatments yet to hit the market. The stock has an average Buy rating, according to FactSet.

"TEVA this year is not as much an earnings story as it is a pipeline story," Jefferies analyst Dennis Ding wrote recently.

Analysts are expecting adjusted earnings per share of $0.05 on revenue of $4.02 billion, per a FactSet poll. That's down from adjusted EPS of $0.66 on sales of $4.176 billion in the second quarter of 2025.

Executives have touted up to eight milestones in 2026 on Teva's pipeline.

Earlier this year, Ding notes, Teva reported good maintenance data for a treatment of ulcerative colitis and Chron's disease -- a drug known as duvakitug that targets TL1A.

On July 7, Teva reported early study data on an antibody to treat vitiligo, an autoimmune disease that causes skin discoloration. That data, for anti-IL-15, "looked positive too," Ding writes.

Teva is also studying that antibody in celiac disease, and plans to release more data later in the year.

Other potential therapies from Teva are aimed at treating schizophrenia, asthma, Tourette syndrome and multiple system atrophy, a neurodegenerative disorder.

Looking across the pipeline, "all of these have the ability to be billion-dollar products in their indications," CEO Richard Francis told analysts earlier this month. Any one of them "could be transformational to Teva," he added.

 

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