| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 26.86 | -21 |
| Intrinsic value (DCF) | 6.14 | -82 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Teva Pharmaceutical Industries Limited (NYSE: TEVA) is a global leader in generic and specialty pharmaceuticals, headquartered in Tel Aviv-Yafo, Israel. Founded in 1901, Teva develops, manufactures, and markets a broad portfolio of medicines, including generics, biosimilars, and innovative therapies. The company operates across North America, Europe, and international markets, offering products in key therapeutic areas such as central nervous system (CNS) disorders, respiratory diseases, oncology, and pain management. Teva’s flagship products include Copaxone for multiple sclerosis, AJOVY for migraine prevention, and AUSTEDO for Huntington’s disease-related chorea. The company also provides respiratory solutions like ProAir and QVAR for asthma and COPD. With a strong focus on R&D and strategic collaborations—such as its partnership with MedinCell for long-acting injectables—Teva remains a critical player in improving global access to affordable and high-quality medicines. Despite financial challenges, its diversified product pipeline and global footprint position it as a resilient competitor in the pharmaceutical industry.
Teva Pharmaceutical presents a mixed investment profile. On the positive side, its diversified portfolio of generics and specialty drugs, strong market presence, and cost leadership in generics provide stability. However, the company faces significant risks, including high debt levels ($18.1B), recent net losses (-$1.64B in FY 2023), and ongoing litigation related to opioid settlements. While its operating cash flow ($1.25B) suggests liquidity, the lack of dividends and diluted EPS (-$1.45) may deter income-focused investors. Teva’s beta of 0.626 indicates lower volatility than the market, but its long-term growth depends on successful pipeline execution and debt management. Investors should weigh its undervalued market cap (~$19.4B) against structural industry pressures like pricing erosion in generics.
Teva’s competitive advantage lies in its scale as one of the world’s largest generic drug manufacturers, with vertically integrated operations and a broad product portfolio. Its generics segment benefits from cost efficiencies and a global supply chain, while its specialty drugs (e.g., Copaxone, AJOVY) provide higher margins. However, Teva faces intense competition from both generic players (e.g., Viatris, Sandoz) and branded pharmaceutical giants (e.g., Pfizer, Novartis). The company’s late entry into biosimilars and reliance on legacy products like Copaxone (facing generic competition) are weaknesses. Its respiratory and CNS franchises compete with innovators such as GSK and Biogen. Teva’s collaboration strategy (e.g., MedinCell for injectables) helps mitigate R&D risks, but its high debt limits agility in M&A. While its emerging market presence offers growth, pricing pressures in the U.S. and Europe remain headwinds. To sustain competitiveness, Teva must balance generics scale with innovative pipeline development.