On January 29, 2026, Scotiabank reiterated its “Outperform” rating for Teva Pharmaceutical Industries, raising its 12-month price target from $35 to $40. The bank cited the company’s successful pivot toward specialty products and recent milestone payments as key drivers of its optimistic outlook. Scotiabank analysts highlighted Teva’s strengthened balance sheet following divestitures in non-core markets, noting that debt leverage has declined by more than one turn over the past twelve months, enhancing financial flexibility for potential acquisitions or R&D investments.

Teva reported fourth-quarter 2025 revenue of $4.71 billion, exceeding consensus estimates of $4.37 billion and representing 11% year-over-year growth in U.S. dollars (9% in local currency). Adjusted earnings per share came in at $0.96, well above the street consensus of $0.68 and up from $0.71 in the prior year. The outperformance was driven by a Sanofi milestone payment related to late-stage ulcerative colitis and Crohn’s disease studies, as well as stronger-than-expected sales of branded products in key markets.

For the first time, Teva’s trio of innovative brands—Austedo, Ajovy and Uzedy—collectively generated approximately $1 billion in quarterly revenues in Q4. Austedo sales jumped 34% year-over-year to $2.26 billion, surpassing management guidance of $2.05 billion to $2.15 billion. Ajovy contributed $673 million, marking 30% growth in local currency and topping its $630 million to $640 million forecast. Uzedy sales rose 63% to $191 million, slightly above expectations of $190 million to $200 million. This milestone reinforces Teva’s transition from a generics-focused portfolio to a biopharmaceutical growth engine.

Teva’s management provided 2026 guidance calling for revenue between $16.4 billion and $16.8 billion and adjusted EPS of $2.57 to $2.77, reflecting continued momentum in specialty medicines. Key drivers include Austedo sales of $2.4 billion to $2.55 billion, Ajovy revenue of $750 million to $790 million, and Uzedy sales of $250 million to $280 million. The company anticipates multiple late-stage pipeline readouts in immunology and neurology, plus the expected FDA approval of olanzapine LAI. Executives estimate these assets could represent over $10 billion in peak annual sales, reinforcing confidence in sustainable growth through 2026 and beyond.