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Branded drugs rise 26% in Q2, generics sales flat

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CEO says many unanswered questions regarding U.S. tariffs

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2025 EPS estimate raised slightly to $2.50-$2.65

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2025 revenue estimated at $16.8-$17.2 billion

(Adds CEO comments, details, share reaction)

By Steven Scheer

JERUSALEM, July 30 (Reuters) - Teva Pharmaceutical

Industries reported a better than expected increase

in second-quarter profit on Wednesday, helped by a 26% rise in

sales of its branded drugs and said it was well positioned to

mitigate potential U.S. tariffs.

Richard Francis, CEO of Teva, the world's largest generic

drugmaker, said there was "big ambiguity" and "so many

unanswered questions" in the pharmaceuticals sector regarding

potential U.S. import levies.

He added, however, that the Israel-based company, had

been leveraging its U.S.-based manufacturing facilities and its

minimal reliance upon China and India to soften the blow from

any eventual tariffs.

"Those aspects just set us up in the face of this

change, probably a lot better than our competitors," Francis

told Reuters. "I feel we have the ability to put ourselves in a

good position here, with the caveat - I need to know the

details."

U.S. President Donald Trump initially threatened Israel

with a 17% import tariff on its exports to the United States.

But what will happen after his August 1 deadline expires remains

unclear.

Global drugmakers also face the possibility of a

sector-specific U.S. tariff on pharmaceuticals despite some

drug shortages in the United States.

Teva said it earned 66 cents per diluted share,

excluding one-time items, in the April-June quarter, up from 61

cents a share a year earlier. Revenue was flat in dollar terms

at $4.18 billion.

Analysts had forecast earnings of 62 cents per share

ex-items for the Israel-based company on revenue of $4.28

billion, LSEG I/B/E/S data showed.

Teva largely reaffirmed its 2025 estimates but revised its

adjusted EPS forecast to $2.50-$2.65 from $2.45-$2.65.

It still projects revenue of $16.8 billion to $17.2 billion

this year and said it was on track for 30% operating profit

margin by 2027.

After a strong 2024, generic drugs were largely flat

globally in the quarter, falling in the United States but offset

by gains in Europe.

Among its branded drugs, sales of its Huntington's

Disease treatment Austedo grew 19% to $498 million, while

migraine medicine Ajovy rose 31% to $155 million and Uzedy, a

drug to treat schizophrenia, jumped 120% to $54 million.

As a result, Teva raised its estimate for 2025 sales of

Austedo slightly to $2 billion to $2.05 billion. It sees sales

of Ajovy at $630 million to $640 million and Uzedy at $190

million to $200 million.

It added it would double biosimilar revenues from 2024

to 2027 and said it remained in negotiations to sell its active

pharmaceutical ingredients unit.

Teva, Francis noted, has a large pipeline of drugs that

will be launched in the coming decade - starting with

schizophrenia drug Olanzapine in the fourth quarter - that

combined will likely peak at more than $10 billion in sales.

Its New York-listed shares were up 2.9% at $17.15 in

mid-morning trade.