With a fresh growth strategy in place and two successful recent launches, Teva seems to be stepping into a new phase with stronger financial stability.
In the second quarter, Teva’s revenues reached $3.8 billion, representing a modest 4% increase compared to the same quarter last year. As a result, the company has adjusted its 2023 revenue outlook to a new range of $15 billion to $15.4 billion, slightly up from the previous estimate of $14.8 billion to $15.4 billion made in February.
One of the driving forces behind Teva’s revenue growth is Austedo, their drug for tardive dyskinesia and Huntington’s disease. In North America, Austedo’s sales surged by 51%, totaling $308 million for the quarter. This drug plays a prominent role in Teva’s “Pivot to Growth ” strategy, which also relies on the recently approved slow-release schizophrenia medication Uzedy, along with their biosimilar pipeline and generic portfolio.
Related: Teva’s CEO Francis Recruits Angus Grant, Former BeiGene Business Development Head
During a conference call, Teva’s CEO, Richard Francis, highlighted that the schizophrenia market represents a $4 billion opportunity. Although Uzedy as just launched in May, the feedback from healthcare providers has been positive, and the drug has the potential to be advantageous in treating the disease, as it reduced the risk of relapse by 80% compared to placebo in clinical trials.
Austedo remains a key growth driver for Teva, and the drug recently received an extended-release FDA approval. The franchise is expected to achieve $2.5 billion in sales by 2027. The company’s next objective for Austedo is to obtain European approval, a milestone they aim to achieve by 2026.
The positive performance of Teva in the second quarter, surpassing analyst estimates for both sales and profits, has boosted the company’s stock price by approximately 11%.
As part of its efforts to move in a new direction, Teva appointed Richard Francis as CEO in November, following a period of declining revenues. In May, the company unveiled its “Pivot to Growth” strategy, which is now showing promising results with the recent successful launches.
Another step towards reshaping the company’s future, Richard Francis recruited Angus Grant, a former BeiGene executive, to be Teva’s head of business development. This move is expected to further strengthen Teva’s position as it navigates its way into a more prosperous era.
