Teva Pharmaceutical Unveils Ambitious Growth Strategy, Targeting $5 Billion in Innovative Drug Sales by 2030

Teva Pharmaceutical Industries Ltd. has announced an ambitious growth strategy, aiming to achieve at least $5 billion in innovative medicine sales by 2030. This target builds upon the company's previously stated goal of reaching $3.5 billion to $4 billion in branded drug revenue by 2027, signaling a significant shift in Teva's focus towards innovative pharmaceuticals.

Austedo, Ajovy, and Uzedy: Driving Growth in Innovative Medicines

At the forefront of Teva's growth strategy are three key products: Austedo for Huntington's disease and tardive dyskinesia (TD), Ajovy for migraine prevention, and Uzedy for schizophrenia. In 2024, these drugs collectively generated approximately $2.3 billion in sales, with Austedo expected to be the primary driver of future growth.

Teva projects Austedo to reach at least $2.5 billion in sales by 2027, with a potential peak of $3 billion. The company's Executive Vice President of U.S. Commercial, Chris Fox, noted that Austedo sales hit an "inflection point" in 2024, largely due to the approval of a once-daily formulation, Austedo XR, in 2023. This new extended-release format has allowed Teva to invest more in the product and expand its market presence.

The company sees significant growth potential in the TD market, estimating that around 785,000 people in the U.S. are affected by the condition. However, only 15% of this patient pool is currently diagnosed, and just 6% of those diagnosed are treated with a vesicular monoamine transporter 2 inhibitor (VMAT2i) like Austedo.

Expanding the Late-Stage Pipeline and Biosimilar Portfolio

Teva is also focusing on expanding its late-stage pipeline and biosimilar portfolio. The company is developing a long-acting formulation of olanzapine for schizophrenia, which it plans to submit to the FDA for review in the second half of 2025. If approved, this could potentially create a "best-in-class LAI franchise" with collective peak sales of $1.5 billion to $2 billion, according to Fox.

Another significant pipeline asset is duvakitug, being co-developed with Sanofi for inflammatory bowel disease. Teva plans to submit duvakitug for approval around 2029, with projected peak sales of $2 billion to $5 billion.

In the biosimilars space, Teva aims to launch approximately 15 complex generics and five biosimilars through 2027. The company expects its biosimilar business to more than double its revenue in the next two years, contributing to its goal of reducing dependence on U.S. generics sales from 33% in 2024 to roughly 25% by 2027.

Strategic Realignment and Financial Performance

Teva's growth strategy, dubbed "Pivot to Growth," was initiated in May 2023 under the leadership of CEO Richard Francis. The plan focuses on four key pillars: maximizing the value of growth drivers like Austedo, expanding innovative R&D, maintaining and building the generics business, and strategic capital allocation.

Since implementing this strategy, Teva has achieved nine consecutive quarters of sales growth. In the first quarter of 2025, the company reported global sales of $3.9 billion, marking a 5% increase in constant currencies compared to the same period in 2024.

As part of its strategic realignment, Teva is also streamlining its manufacturing operations to save approximately $700 million in costs. The company continues to work on divesting its active pharmaceutical ingredient business, although this process is still ongoing.