Teva Targets Up to $7 Billion in Innovative Drug Revenue by 2030

Teva Pharmaceutical Industries (NYSE:TEVA) is targeting $6 billion to $7 billion in innovative medicines revenue by 2030, up from roughly $1.3 billion in 2022 — a more than fourfold expansion the company laid out at its first R&D Day. President and CEO Richard Francis said Teva expects $3.8 billion to $3.92 billion in innovative revenue already in 2026, and he pegged potential peak sales of the pipeline at more than $10 billion.

The projections, the company cautioned, depend on clinical development, regulatory approvals and commercial performance, and its forward-looking statements remain subject to risks and uncertainties.

What do the existing medicines deliver?

The numbers came fast. Francis said AUSTEDO sales should reach $2.5 billion in 2026 — a year ahead of the prior schedule — and he believes the product can generate more than $3 billion annually. He projected AJOVY sales above $900 million this year, eventually crossing $1 billion. Teva has also launched WELTRUZA, a long-acting injectable olanzapine treatment, alongside its existing injectable UZEDY.

By 2030, Francis said, Teva expects nine innovative assets on the market, each with potential annual sales exceeding $1 billion. The takeaway: the generics giant wants a durable portfolio of blockbusters, not a single-product story.

How does the pivot change the financials?

CFO Eli Kalif quantified the margin effect. The shift toward innovative medicines should lift gross margin above 60% by 2030, from approximately 55% today. He also projected more than $11 billion in cumulative free cash flow over the next four years, while Francis said annual free cash flow could exceed $3.5 billion in 2030.

Leverage stays on the agenda. Kalif said Teva plans to maintain its goal of a net debt-to-EBITDA ratio of two times by the end of 2027, funding research, business development and growth while keeping share buybacks as an option when appropriate.

What clinical milestones are ahead?

Teva is pursuing multiple uses for its anti-IL-15 antibody, including vitiligo, celiac disease and alopecia. David Gardiner, senior vice president and head of innovative medicines and clinical development, described results from two vitiligo trial patients who received two quarterly doses. Teva is combining two pivotal trials under one protocol and targeting a U.S. filing in 2031.

In a celiac disease study, Gardiner said a single dose of anti-IL-15 prevented the loss of intestinal villus height during a six-week gluten challenge, with results correlating with improved symptoms. Chief Medical Officer Eric Hughes noted the symptom improvement in the small study was not statistically significant. Another celiac study is planned for the second half of 2027, subject to agreement on endpoints.

For duvakitug, an antibody in development with Sanofi, Teva highlighted Phase II results in ulcerative colitis and Crohn's disease. The company is starting a study in Crohn's patients with intestinal narrowing and has enrolled the first patient in a hidradenitis suppurativa trial.

The Phase III program for Teva's dual-action rescue inhaler, or DARI, for asthma is fully enrolled, Gardiner said. Top-line results and a regulatory submission are expected in 2027, with the filing targeted for the second half of the year.

What did the early cancer data show?

Chief Scientific Officer Steffen Nock presented preliminary Phase I data for Teva's PD-1/IL-2 cancer candidate. Among the first 25 patients evaluated, he reported one complete response and six partial responses. The study is ongoing, and most available data came from lower dose levels, Nock said.

Two earlier antibody programs followed: a TL1A/IL-23 candidate for inflammatory disease and a TSLP/IL-13 candidate initially aimed at asthma. Hughes said the TL1A/IL-23 program remains preclinical, while an application to begin clinical testing of TSLP/IL-13 is being submitted.

In neuroscience, Teva is seeking approval of ecopipam for Tourette syndrome and hopes for a decision in the first half of 2027. During the question-and-answer session, Francis said the company is using $1 billion as a starting point for peak sales expectations but is still assessing pricing and market access.

Teva also sees an opportunity for dexmedetomidine as a potential at-home treatment for acute agitation associated with schizophrenia and bipolar disorder. Hughes said the application has been submitted, while executives cautioned the commercial opportunity will depend in part on the eventual regulatory label.

The bottom line

Founded in Jerusalem in 1901, Teva grew from a regional pharmaceutical business into a global maker of generic medicines, specialty medicines and biosimilars, serving markets across North America, Europe and beyond. Its pivot now rests on hard targets: $6-7 billion in innovative revenue by 2030, gross margin above 60%, and free cash flow above $3.5 billion. In plain words, Teva has set a decade deadline to prove it can build a branded-drug business on the scale of its generics past.