Podcast Summary: Teva Surges After Push Into Branded Drugs Drives Sales Beat

Podcast: Bloomberg Businessweek
Episode Date: November 6, 2025
Hosts: Carol Massar and Tim Stenovec
Guest: Richard Francis, President and CEO of Teva Pharmaceuticals
Interviewer: Katie

Episode Overview

This episode dives into Teva Pharmaceuticals' strong third-quarter earnings, focusing on the company’s remarkable share surge and ongoing strategic transformation. CEO Richard Francis discusses Teva’s shift from a generics-focused company to a biopharma leader with a growing innovative portfolio. The conversation highlights the drivers behind the recent revenue beat, the outlook for both generics and branded drugs, updates on pipeline developments, and the strategic sale of Teva’s active pharmaceutical ingredients (API) business.

Key Discussion Points & Insights

1. Teva’s Earnings Surge and Strategic Shift

• [01:29] Shares rose over 21%, reaching their highest levels since 2018 after Teva reported $4.48 billion in Q3 revenues, surpassing consensus expectations.

• Richard Francis attributes the excitement to growth in Teva’s innovative branded portfolio, now a central company focus, versus a previous generics-only approach.

• Teva’s transition is changing its gross margin dynamics and future profit potential.

  “When I came on board three years ago, [Teva] was a generics company and now we're transitioning it to a world class biopharma company. And to do that we need to have an innovative branded portfolio. And that was up 33%...”
  — Richard Francis, 02:08

Key branded drugs driving growth:

• Austedo: +38% (tardive dyskinesia)
• Uzedy: +24% (schizophrenia)
• Ajovy: +19%

“That transition... is changing our gross margin dynamics, which of course feeds down to the EBITDA and to the EPS.”
— Richard Francis, 02:54

2. Handling the Generics Business

• [04:30] Generics remains a core but is not scrutinized quarter-to-quarter; growth is better understood as a 2-year CAGR, given variable patent expiries and product launches.
• Recent quarterly generics sales missed estimates, but long-term performance has exceeded expectations.
• Generics growth projected at 2% CAGR, funding the pipeline and providing a stable base as innovative drugs increase profits.

“It's a big business and we don't look at it on a quarterly basis or even a yearly basis. We look at on a two year CAGR... our generics business has performed... considerably.”
— Richard Francis, 04:35

Pipeline highlights:

• Long-acting schizophrenia treatment (next year)
• Asthma drug (year after)
• Rare disease/SMA drug
• New treatments for UC and CD

3. The GLP-1 Opportunity

• [06:15] Teva launched the first US generic GLP-1 (Victoza) for weight loss—amid strong market competition.
• Teva opted for commercialization partnerships rather than manufacturing investments due to uncertainty in pricing and volume.
• GLP-1s will contribute but are not a primary growth driver; focus remains on broader generics and emerging biosimilars (10+ in pipeline).

“We do see significant opportunity... but... we also understood the uncertainty around that area around pricing, around volume... It will be something that helps drive our growth, but it won't be a significant growth driver.”
— Richard Francis, 06:41

4. API (Active Pharmaceutical Ingredient) Business Sale

• [07:32] Teva’s previously announced sale of its raw ingredients/API business recently fell through after talks with an unnamed buyer ended.
• The business is valuable—#2 globally outside of China/India—and remains for sale, but Francis emphasized the need for a partner aligned with Teva’s long-term supply needs.
• Improved company strength means less urgency to sell quickly; intent is still to divest for strategic alignment, but only on optimal terms.

“We are still wanting to divest the business. We think it's a very good business... But it's still an attractive business, but strategically it's not one we're going to keep long term because as we transform into this biopharma company...”
— Richard Francis, 08:14 & 09:20

Notable Quotes & Memorable Moments

• On Teva’s transformation:

  “Now we're transitioning it to a world class biopharma company.”
  (Richard Francis, 02:11)

• On generics as a funding engine:

  “Our generics business is helping fuel it because obviously we use the revenue and the cash that throws off to fuel our pipeline.”
  (Richard Francis, 05:20)

• On the failed API sale:

  “We need to make sure that the service agreements we have with that partner are the ones that benefit Teva over the short, medium and long term. And so because of that, you know, we want to make sure this deal is right.”
  (Richard Francis, 08:30)

Important Timestamps

• 01:29: Episode interview starts—Teva’s Q3 earnings, stock surge, and revenue beat
• 02:08: Richard Francis on branded drugs portfolio growth
• 04:30: Generics business performance, two-year CAGR context
• 06:15: GLP-1 generics strategy and partnerships
• 07:32: Discussion about the API business sale, reasons for failed deal, and future plans
• 09:26: Wrap-up and final remarks

Tone and Language

The tone is direct, analytical, and forward-looking, with Francis emphasizing strategic clarity, measured optimism, and careful execution. He blends detail with big-picture strategy, aiming to reassure investors about Teva’s transformation and sustainable growth trajectory.

This summary covers all substantive interview topics and avoids unrelated segments such as advertisements or non-content chatter.