Shares of Teva Pharmaceutical (TEVA) jumped ~11% in the premarket on Wednesday after the generic drugmaker posted better-than-expected quarterly earnings for the first time this year and raised the midpoint of its non-GAAP earnings outlook.
The Israel-based pharma company reported $4.5B in revenue for the period with ~3% YoY growth, while its adjusted earnings per share improved ~13% YoY to $0.78, exceeding the consensus by $0.11 and marking its first earnings beat for 2025.
TEVA attributed revenue growth to higher revenue from its generic products and its movement disorder therapy, Austedo, in its U.S. segment.
During the quarter, the Tel Aviv-based firm’s generics unit contributed ~$2.6B in revenue globally, backed by ~7% YoY growth from its U.S. segment, which added $1.2B from generics and biosimilars.
Meanwhile, revenue from Austedo climbed 38% and 32% YoY in the U.S. and international markets, adding $601M and $17M, respectively, and the company’s migraine therapy, Ajovy, brought $169M to the topline with ~23% YoY growth globally.
“Our innovative portfolio driving the 11th consecutive quarter of growth in the third quarter reflects the accelerating momentum of our transformation and the strength of our innovation-led Pivot to Growth strategy,” CEO Richard Francis said.
As for guidance, the company narrowed its full-year revenue outlook to $16.8B – $17.0B compared to $16.8B – $17.2B projected in July and in line with $16.88B in the consensus. It raised the midpoint of adjusted earnings guidance to $2.60 per share, up from $2.58 previously and $2.56 in the consensus.
Additionally, TEVA said it has terminated exclusive talks to sell its Active Pharmaceutical Ingredient (API) unit and plans to begin a renewed attempt to sell the division, an idea the company first mooted in 2024 as a potential divestment.