[10-Q] TEVA PHARMACEUTICAL INDUSTRIES LTD Quarterly Earnings Report
Teva Pharmaceutical Industries reported Q3 2025 results showing higher profitability. Net revenues were $4,480 million, up from $4,332 million a year ago. Operating income reached $882 million versus a loss last year, and net income attributable to Teva was $433 million (basic EPS $0.38; diluted $0.37). For the first nine months, net revenues were $12,547 million with net income of $930 million.
The balance sheet reflects $2,203 million in cash and cash equivalents, total assets of $39,856 million, and Teva shareholders’ equity of $7,250 million. Senior notes and loans were $16,766 million. Teva executed several 2025 note repayments and, in May 2025, issued new senior notes of $700 million (5.75% due 2030), €1,000 million (4.125% due 2031) and $500 million (6.00% due 2032). A June 2025 tender extinguished multiple tranches, resulting in a $10 million loss recorded in financial expenses. Shares outstanding were 1,147,282,512 as of September 30, 2025.
- None.
- None.
Insights
Refinancing extended maturities while modestly reducing legacy tranches.
Teva repaid several 2025 notes (1.00%, 4.50%, 6.00%, 7.13%) and issued new senior notes of
Long-term “senior notes and loans” were
Quarter swung to profit with stronger operating income.
Q3 net revenues were
Gross profit improved to
Table of Contents
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Not Applicable | ||
(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification Number) | |
ISRAEL |
||
(Address of principal executive offices) |
(Zip code) | |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
| ☒ | Accelerated filer | ☐ | ||||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
| Emerging growth company | ||||||
Table of Contents
TEVA PHARMACEUTICAL INDUSTRIES LIMITED
For an accessible version of this Quarterly Report on Form 10-Q, please visit www.tevapharm.com
INDEX
| PART I. | Financial Statements (unaudited) | 5 | ||||
| Item 1. | Financial Statements (unaudited) | 5 | ||||
| Consolidated Balance Sheets | 5 | |||||
| Consolidated Statements of Income (loss) | 6 | |||||
| Consolidated Statements of Comprehensive Income (loss) | 7 | |||||
| Consolidated statements of changes in equity | 8 | |||||
| Consolidated Statements of Cash Flows | 10 | |||||
| Notes to Consolidated Financial Statements | 11 | |||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 56 | ||||
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 83 | ||||
| Item 4. | Controls and Procedures | 83 | ||||
| PART II. | OTHER INFORMATION | 84 | ||||
| Item 1. | Legal Proceedings | 84 | ||||
| Item 1A. | Risk Factors | 84 | ||||
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 84 | ||||
| Item 3. | Defaults Upon Senior Securities | 84 | ||||
| Item 4. | Mine Safety Disclosures | 84 | ||||
| Item 5. | Other Information | 84 | ||||
| Item 6. | Exhibits | 85 | ||||
| Signatures | 86 | |||||
2
Table of Contents
| • | our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; concentration of our customer base and commercial alliances among our customers; competition faced by our generic medicines from other pharmaceutical companies and changes in regulatory policy that may result in additional costs and delays; delays in launches of new generic products; our ability to develop and commercialize additional pharmaceutical products; competition for our innovative medicines; our ability to achieve expected results from investments in our product pipeline; our ability to successfully execute our Pivot to Growth strategy, including to expand our innovative and biosimilar medicines pipeline and profitably commercialize the innovative medicines and biosimilar portfolio, whether organically or through business development, to sustain and focus our portfolio of generic medicines, and to execute on our organizational transformation and to achieve expected cost savings; and the effectiveness of our patents and other measures to protect our intellectual property rights, including any potential challenges to our Orange Book patent listings in the U.S.; |
| • | our significant indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments; and our potential need to raise additional funds in the future, which may not be available on acceptable terms or at all; |
| • | our business and operations in general, including: the impact of global economic conditions and other macroeconomic developments and the governmental and societal responses thereto; the widespread outbreak of an illness or any other communicable disease, or any other public health crisis; effectiveness of our optimization efforts; significant disruptions of information technology systems, including cybersecurity attacks and breaches of our data security; interruptions in our supply chain or problems with internal or third party manufacturing; any impact of a prolonged government shutdown; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism, such as the ongoing conflict between Russia and Ukraine and in the Middle East; our ability to attract, hire, integrate and retain highly skilled personnel; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets or business units and close or divest plants and facilities, as well as our ability to successfully and cost-effectively consummate such sales and divestitures, including our planned divestiture of our API business; |
| • | compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory requirements and changes; the effects of governmental, regulatory and civil proceedings and litigation which we are, or in the future become, party to; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage, including as a result of the One Big Beautiful Bill signed into law in the U.S. in July 2025 (“OBBBA”), which is expected to result in stricter Medicaid eligibility requirements and work requirements, which may result in reduced Medicaid enrollment and a resulting decline in coverage for purchases of our medicines, and U.S. Executive Orders issued in April and May 2025 intended to reduce the prices paid by Americans for prescription medicines, including most-favored-nation pricing; increased legal and regulatory action in connection with public concern over the abuse of opioid medications; our ability to timely make payments required under our nationwide opioids settlement agreement and provide our generic version of Narcan ® (naloxone hydrochloride nasal spray) in the amounts and at the times required under the terms of such agreement; scrutiny from competition and pricing authorities around the world, including our ability to comply with and operate under our deferred prosecution agreement (“DPA”) with the U.S. Department of Justice (“DOJ”); potential liability for intellectual property right infringement; product liability claims; claims brought by regulatory agencies; failure to comply with complex Medicare, Medicaid and other governmental programs reporting and payment obligations; compliance with sanctions and trade control laws; environmental risks; and the impact of sustainability issues; |
| • | other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; potential impairments of our long-lived assets; the impact of geopolitical conflicts and developments, including in the Middle East and in Russia and Ukraine; potential significant increases in tax liabilities; the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business; our exposure to changes in international trade policies, including the imposition of tariffs in the jurisdictions in which we operate, and the effects of such developments on sales of our products and the pricing and availability of our raw materials; and the impact of any future failure to establish and maintain effective internal control over our financial reporting; |
ITEM 1. |
FINANCIAL STATEMENTS |
September 30, 2025 |
December 31, 2024 |
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Accounts receivables, net of allowance for credit losses of $ |
||||||||
Inventories |
||||||||
Prepaid expenses |
||||||||
Other current assets |
||||||||
Assets held for sale |
||||||||
Total current assets |
||||||||
Deferred income taxes |
||||||||
Other non-current assets |
||||||||
Property, plant and equipment, net |
||||||||
Operating lease right-of-use |
||||||||
Identifiable intangible assets, net |
||||||||
Goodwill |
||||||||
Total assets |
$ | $ | ||||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Short-term debt |
$ | $ | ||||||
Sales reserves and allowances |
||||||||
Accounts payables |
||||||||
Employee-related obligations |
||||||||
Accrued expenses |
||||||||
Other current liabilities |
||||||||
Liabilities held for sale |
||||||||
Total current liabilities |
||||||||
Long-term liabilities: |
||||||||
Deferred income taxes |
||||||||
Other taxes and long-term liabilities |
||||||||
Senior notes and loans |
||||||||
Operating lease liabilities |
||||||||
Total long-term liabilities |
||||||||
Commitments and contingencies , see note 10 |
||||||||
Total liabilities |
||||||||
Redeemable non-controlling interests |
||||||||
Equity: |
||||||||
Teva shareholders’ equity: |
||||||||
Ordinary shares of NIS |
||||||||
Additional paid-in capital |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Treasury shares as of September 30, 2025 and December 31, 2024: |
( |
) | ( |
) | ||||
Non-controlling interests |
||||||||
Total equity |
||||||||
Total liabilities, redeemable non-controlling interests and equity |
$ | $ | ||||||
Three months ended |
Nine months ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2025 |
2024 |
2025 |
2024 |
|||||||||||||
Net revenues |
$ | $ | $ | $ | ||||||||||||
Cost of sales |
||||||||||||||||
Gross profit |
||||||||||||||||
Research and development expenses |
||||||||||||||||
Selling and marketing expenses |
||||||||||||||||
General and administrative expenses |
||||||||||||||||
Intangible assets impairments |
||||||||||||||||
Goodwill impairment |
||||||||||||||||
Other assets impairments, restructuring and other items |
( |
) | ||||||||||||||
Legal settlements and loss contingencies |
||||||||||||||||
Other loss (income) |
( |
) | ( |
) | ||||||||||||
Operating income (loss) |
( |
) | ( |
) | ||||||||||||
Financial expenses, net |
||||||||||||||||
Income (loss) before income taxes |
( |
) | ( |
) | ||||||||||||
Income taxes (benefit) |
||||||||||||||||
Share in (profits) losses of associated companies, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Net income (loss) |
( |
) | ( |
) | ||||||||||||
Net income (loss) attributable to redeemable and non-redeemable non-controlling interests |
( |
) | ||||||||||||||
Net income (loss) attributable to Teva |
( |
) | ( |
) | ||||||||||||
Earnings (loss) per share attributable to ordinary shareholders: |
||||||||||||||||
Basic |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Diluted |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Weighted average number of shares (in millions): |
||||||||||||||||
Basic |
||||||||||||||||
Diluted |
||||||||||||||||
Three months ended |
Nine months ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2025 |
2024 |
2025 |
2024 |
|||||||||||||
Net income (loss) |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Other comprehensive income (loss), net of tax: |
||||||||||||||||
Currency translation adjustment |
( |
) | ( |
) | ||||||||||||
Unrealized gain (loss) from derivative financial instruments, net |
||||||||||||||||
Unrealized loss on defined benefit plans |
* | ( |
) | ( |
) | ( |
) | |||||||||
Total other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
Total comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
Comprehensive income (loss) attributable to redeemable and non-redeemable non-controlling interests |
( |
) | ||||||||||||||
Comprehensive income (loss) attributable to Teva |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
| * | Represents an amount less than $ |
Teva shareholders’ equity |
||||||||||||||||||||||||||||||||||||
Ordinary shares |
||||||||||||||||||||||||||||||||||||
Number of shares (in millions) |
Stated value |
Additional paid-in capital |
Retained earnings (accumulated deficit) |
Accumulated other comprehensive (loss) |
Treasury shares |
Total Teva shareholders’ equity |
Non-controlling interests |
Total equity |
||||||||||||||||||||||||||||
(U.S. dollars in millions) |
||||||||||||||||||||||||||||||||||||
Balance at June 30, 2025 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Net Income (loss) |
||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Dividend to non-controlling interests* |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Balance at September 30, 2025 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||
| * | In connection with a declaration of dividends to non-controlling interests in Teva’s subsidiary in Bulgaria. |
Teva shareholders’ equity |
||||||||||||||||||||||||||||||||||||
Ordinary shares |
||||||||||||||||||||||||||||||||||||
Number of shares (in millions) |
Stated value |
Additional paid-in capital |
Retained earnings (accumulated deficit) |
Accumulated other comprehensive (loss) |
Treasury shares |
Total Teva shareholders’ equity |
Non-controlling interests |
Total equity |
||||||||||||||||||||||||||||
(U.S. dollars in millions) |
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2024 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Net Income (loss) |
||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||||||||||||||||||||
Issuance of Shares |
* | * | * | |||||||||||||||||||||||||||||||||
Proceeds from exercise of options |
||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Purchase of shares from redeemable non-controlling interests** |
||||||||||||||||||||||||||||||||||||
Dividend to non-controlling interests*** |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Balance at September 30, 2025 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||
| * | Represents an amount less than $ |
| ** | In connection with the sale of Teva’s business venture in Japan. See note 17. |
| *** | In connection with a declaration of dividends to non-controlling interests in Teva’s subsidiary in Bulgaria. |
Teva shareholders’ equity |
||||||||||||||||||||||||||||||||||||
Ordinary shares |
||||||||||||||||||||||||||||||||||||
Number of shares (in millions) |
Stated value |
Additional paid-in capital |
Retained earnings (accumulated deficit) |
Accumulated other comprehensive (loss) |
Treasury shares |
Total Teva shareholders’ equity |
Non-controlling interests |
Total equity |
||||||||||||||||||||||||||||
(U.S. dollars in millions) |
||||||||||||||||||||||||||||||||||||
Balance at June 30, 2024 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Net Income (loss) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
||||||||||||||||||||||||||||||||||||
Issuance of shares |
* | * | * | * | ||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Balance at September 30, 2024 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||
| * | Represents an amount less than |
Teva shareholders’ equity |
||||||||||||||||||||||||||||||||||||
Ordinary shares |
||||||||||||||||||||||||||||||||||||
Number of shares (in millions) |
Stated value |
Additional paid-in capital |
Retained earnings (accumulated deficit) |
Accumulated other comprehensive (loss) |
Treasury shares |
Total Teva shareholders’ equity |
Non-controlling interests |
Total equity |
||||||||||||||||||||||||||||
(U.S. dollars in millions) |
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Net Income (loss) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Issuance of Shares |
* | |||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
||||||||||||||||||||||||||||||||||||
Proceeds from exercise of options |
||||||||||||||||||||||||||||||||||||
Dividend to non-controlling interest ** |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||
Purchase of shares from non-controlling interests*** |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
Balance at September 30, 2024 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||
| * | Represents an amount less than $ |
| ** | In connection with dividends to non-controlling interests in Teva’s business venture in Japan. |
| *** | Purchase of shares from non-controlling interests in a Teva’s subsidiary in Switzerland. |
Three months ended |
Nine months ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2025 |
2024 |
2025 |
2024 |
|||||||||||||
Operating activities: |
||||||||||||||||
Net income (loss) |
$ | ( |
) |
$ | ( |
) | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operations: |
||||||||||||||||
Depreciation and amortization |
||||||||||||||||
Impairment of goodwill |
||||||||||||||||
Impairment of long-lived assets and assets held for sale |
( |
) | ||||||||||||||
Net change in operating assets and liabilities |
( |
) | ( |
) | ( |
) | ||||||||||
Deferred income taxes – net and uncertain tax positions |
( |
) | ( |
) | ( |
) | ||||||||||
Stock-based compensation |
||||||||||||||||
Other items* |
||||||||||||||||
Net loss (gain) from sale of business and long-lived assets |
( |
) | ( |
) | ||||||||||||
Net cash provided by (used in) operating activities |
||||||||||||||||
Investing activities: |
||||||||||||||||
Beneficial interest collected in exchange for securitized trade receivables |
||||||||||||||||
Purchases of property, plant and equipment and intangible assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds from sale of business and long-lived assets, net |
||||||||||||||||
Acquisition of businesses, net of cash acquired |
( |
) | ||||||||||||||
Purchases of investments and other assets |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Proceeds from sale of investments |
||||||||||||||||
Other investing activities |
||||||||||||||||
Net cash provided by (used in) investing activities |
||||||||||||||||
Financing activities: |
||||||||||||||||
Repayment of senior notes and loans and other long-term liabilities |
( |
) | ( |
) | ( |
) | ||||||||||
Proceeds from senior notes, net of issuance costs |
( |
) | ||||||||||||||
Purchase of shares from redeemable and non-redeemable non-controlling interests |
( |
) | ( |
) | ||||||||||||
Dividends paid to redeemable and non-redeemable non-controlling interests |
( |
) | ( |
) | ||||||||||||
Other financing activities |
( |
) | ( |
) | ||||||||||||
Net cash provided by (used in) financing activities |
( |
) | ( |
) | ( |
) | ||||||||||
Translation adjustment on cash and cash equivalents |
( |
) | ( |
) | ||||||||||||
Net change in cash and cash equivalents |
( |
) | ||||||||||||||
Balance of cash, cash equivalents at beginning of period |
||||||||||||||||
Balance of cash, cash equivalents at end of period |
$ | $ | ||||||||||||||
Non-cash financing and investing activities: |
||||||||||||||||
Beneficial interest obtained in exchange for securitized accounts receivables |
$ | $ | ||||||||||||||
| * | Adjustment in the nine-month period ended September 30, 2024 was mainly related to an agreement with the Israeli Tax Authorities. See note 11. |
September 30, |
December 31, |
|||||||
2025 |
2024 |
|||||||
(U.S. $ in millions) |
||||||||
Accounts receivables |
$ | |||||||
Inventories |
$ | |||||||
Property, plant and equipment, net and others |
||||||||
Identifiable intangible assets, net |
||||||||
Goodwill |
||||||||
Other current assets |
||||||||
Other non-current assets |
||||||||
Expected loss on sale* |
( |
) | ( |
) | ||||
Total assets of the disposal group classified as held for sale in the consolidated balance sheets |
$ | $ | ||||||
Accounts payables |
( |
) | ( |
) | ||||
Other current liabilities |
( |
) | ( |
) | ||||
Other non-current liabilities |
( |
) | ( |
) | ||||
Expected loss on sale* |
( |
) | ||||||
Total liabilities of the disposal group classified as held for sale in the consolidated balance sheets |
$ | ( |
) | $ | ( |
) | ||
| * | Includes an expected loss from reclassification of currency translation adjustments to the consolidated statements of income (loss) upon sale. |
Three months ended September 30, 2025 |
||||||||||||||||||||
United States |
Europe |
International Markets |
Other activities |
Total |
||||||||||||||||
(U.S.$ in millions) |
||||||||||||||||||||
Sale of goods |
||||||||||||||||||||
Licensing arrangements |
||||||||||||||||||||
Distribution |
§ | |||||||||||||||||||
Other |
§ | |||||||||||||||||||
| $ | $ | $ | $ | $ | ||||||||||||||||
| § | Represents an amount less than $0.5 million. |
Three months ended September 30, 2024 |
||||||||||||||||||||
United States |
Europe |
International Markets |
Other activities |
Total |
||||||||||||||||
(U.S.$ in millions) |
||||||||||||||||||||
Sale of goods |
||||||||||||||||||||
Licensing arrangements |
||||||||||||||||||||
Distribution |
§ | |||||||||||||||||||
Other |
§ | |||||||||||||||||||
| $ | $ | $ | $ | $ | ||||||||||||||||
| § | Represents an amount less than $0.5 million. |
Nine months ended September 30, 2025 |
||||||||||||||||||||
United States |
Europe |
International Markets |
Other activities |
Total |
||||||||||||||||
(U.S.$ in millions) |
||||||||||||||||||||
Sale of goods |
||||||||||||||||||||
Licensing arrangements |
||||||||||||||||||||
Distribution |
||||||||||||||||||||
Other |
||||||||||||||||||||
| $ | $ | $ | $ | $ | ||||||||||||||||
Nine months ended September 30, 2024 |
||||||||||||||||||||
United States |
Europe |
International Markets |
Other activities |
Total |
||||||||||||||||
(U.S.$ in millions) |
||||||||||||||||||||
Sale of goods |
||||||||||||||||||||
Licensing arrangements |
||||||||||||||||||||
Distribution |
§ | |||||||||||||||||||
Other |
§ | |||||||||||||||||||
| $ | $ | $ | $ | $ | ||||||||||||||||
| § | Represents an amount less than $0.5 million. |
Sales Reserves and Allowances |
||||||||||||||||||||||||||||||||
Reserves included in Accounts Receivable, net |
Rebates |
Medicaid and other governmental allowances |
Chargebacks |
Returns |
Other |
Total reserves included in Sales Reserves and Allowances |
Total |
|||||||||||||||||||||||||
(U.S.$ in millions) |
||||||||||||||||||||||||||||||||
Balance at January 1, 2025 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Provisions related to sales made in current year period |
||||||||||||||||||||||||||||||||
Provisions related to sales made in prior periods |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Credits and payments |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Translation differences |
||||||||||||||||||||||||||||||||
Balance at September 30, 2025 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Sales Reserves and Allowances |
||||||||||||||||||||||||||||||||
Reserves included in Accounts Receivable, net |
Rebates |
Medicaid and other governmental allowances |
Chargebacks |
Returns |
Other |
Total reserves included in Sales Reserves and Allowances |
Total |
|||||||||||||||||||||||||
(U.S.$ in millions) |
||||||||||||||||||||||||||||||||
Balance at January 1, 2024 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Provisions related to sales made in current year period |
||||||||||||||||||||||||||||||||
Provisions related to sales made in prior periods |
— | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Credits and payments |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Translation differences |
— | ( |
) | |||||||||||||||||||||||||||||
Balance at September 30, 2024 |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
September 30, |
December 31, |
|||||||
2025 |
2024 |
|||||||
(U.S. $ in millions) |
||||||||
Finished products |
$ | $ | ||||||
Raw and packaging materials |
||||||||
Products in process |
||||||||
Materials in transit and payments on account |
||||||||
| $ | $ | |||||||
Gross carrying amount net of impairment |
Accumulated amortization |
Net carrying amount |
||||||||||||||||||||||
September 30, 2025 |
December 31, 2024 |
September 30, 2025 |
December 31, 2024 |
September 30, 2025 |
December 31, 2024 |
|||||||||||||||||||
(U.S. $ in millions) |
||||||||||||||||||||||||
Product rights |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Trade names |
||||||||||||||||||||||||
In process research and development |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
| (a) | Identifiable product rights of $ |
| (b) | IPR&D assets of $ |
| (a) | Identifiable product rights of $ |
| (b) | IPR&D assets of $ |
| (a) | Identifiable product rights of $ |
| (b) | IPR&D assets of $ |
United States |
Europe |
International Markets |
Other |
Total |
||||||||||||||||||||
Teva’s API |
Medis |
|||||||||||||||||||||||
(U.S. $ in millions) |
||||||||||||||||||||||||
Balance as of December 31, 2024 (1) |
$ | $ | $ | $ | $ | |||||||||||||||||||
Other changes during the period: |
||||||||||||||||||||||||
Translation differences and other |
||||||||||||||||||||||||
Balance as of September 30, 2025 (1) |
$ | $ | $ | $ | $ | |||||||||||||||||||
| (1) | Cumulative goodwill impairment as of September 30, 2025 and December 31, 2024, was each approximately $ |
a. |
Short-term debt: |
September 30, |
December 31, |
|||||||||||||||
Interest rate as of September 30, 2025 |
Maturity |
2025 |
2024 |
|||||||||||||
(U.S. $ in millions) |
||||||||||||||||
Convertible senior debentures |
% | |||||||||||||||
Current maturities of long-term liabilities and other |
||||||||||||||||
Total short-term debt |
$ | $ | ||||||||||||||
b. |
Long-term debt: |
Interest rate as of September 30, 2025 |
Maturity |
September 30, 2025 |
December 31, 2024 |
|||||||||||||
(U.S. $ in millions) |
||||||||||||||||
| Senior notes EUR |
% | |||||||||||||||
| Senior notes USD |
% | |||||||||||||||
| Senior notes EUR |
% | |||||||||||||||
| Senior notes CHF |
% | |||||||||||||||
| Senior notes USD |
% | |||||||||||||||
| Senior notes EUR |
% | |||||||||||||||
| Sustainability-linked senior notes USD |
% | |||||||||||||||
| Sustainability-linked senior notes EUR |
% | |||||||||||||||
| Senior notes USD |
% | |||||||||||||||
| Senior notes EUR |
% | |||||||||||||||
| Sustainability-linked senior notes USD |
% | |||||||||||||||
| Sustainability-linked senior notes USD |
% | |||||||||||||||
| Sustainability-linked senior notes EUR |
% | |||||||||||||||
| Sustainability-linked senior notes EUR |
% | |||||||||||||||
| Senior notes USD |
% | — | ||||||||||||||
| Sustainability-linked senior notes USD |
% | |||||||||||||||
| Sustainability-linked senior notes EUR |
% | |||||||||||||||
| Senior notes EUR |
% | — | ||||||||||||||
| Senior notes USD |
% | — | ||||||||||||||
| Senior notes USD |
% | |||||||||||||||
| Senior notes USD |
% | |||||||||||||||
| |
|
|
|
|||||||||||||
| Total senior notes |
||||||||||||||||
| Less current maturities |
( |
) | ||||||||||||||
| Less debt issuance costs (11) |
( |
) | ( |
) | ||||||||||||
| |
|
|
|
|||||||||||||
| Total senior notes and loans |
$ | $ | ||||||||||||||
| |
|
|
|
|||||||||||||
| (1) | If Teva fails to achieve certain sustainability performance targets, a one-time premium payment of |
| (2) | If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by |
| (3) | If Teva fails to achieve certain sustainability performance targets, the interest rate shall increase by |
| (4) | In January 2025, Teva repaid $ |
| (5) | In January 2025, Teva repaid $ |
| (6) | In March 2025, Teva repaid $ |
| (7) | In May 2025, Teva issued senior notes in an aggregate principal amount of $ |
| (8) | In May 2025, Teva issued senior notes in an aggregate principal amount of € |
| (9) | In May 2025, Teva issued senior notes in an aggregate principal amount of $ |
| (10) | In June 2025, Teva consummated a cash tender offer and extinguished $ |
| (11) | Debt issuance costs as of September 30, 2025 include $ |
| (12) | In July 2025, Teva repaid $ |
| * | Interest rate adjustments and a potential one-time premium payment related to the sustainability-linked bonds are treated as bifurcated embedded derivatives. See note 8c. |
a. |
Foreign exchange risk management: |
b. |
Interest risk management: |
c. |
Bifurcated embedded derivatives: |
d. |
Derivative instruments outstanding: |
Fair value |
Fair value |
|||||||||||||||
Designated as hedging instruments |
Not designated as hedging instruments |
|||||||||||||||
September 30, 2025 |
December 31, 2024 |
September 30, 2025 |
December 31, 2024 |
|||||||||||||
Reported under |
(U.S. $ in millions) |
(U.S. $ in millions) |
||||||||||||||
Asset derivatives: |
||||||||||||||||
Other current assets: |
||||||||||||||||
Option and forward contracts |
$ | $ | $ | $ | ||||||||||||
Liability derivatives: |
||||||||||||||||
Other current liabilities: |
||||||||||||||||
Option and forward contracts |
( |
) | ( |
) | ||||||||||||
Other non-current liabilities: |
||||||||||||||||
Cross-currency interest rate swap-cash flow hedge (1) |
( |
) | ||||||||||||||
Financial expenses, net |
Other comprehensive income (loss) |
|||||||||||||||
Three months ended, |
Three months ended, |
|||||||||||||||
September 30, 2025 |
September 30, 2024 |
September 30, 2025 |
September 30, 2024 |
|||||||||||||
Reported under |
(U.S. $ in millions) |
|||||||||||||||
Line items in which effects of hedges are recorded |
$ | $ | $ | ( |
) | $ | ||||||||||
Cross-currency interest rate swap—cash flow hedge (1) |
( |
) | ( |
) | ||||||||||||
Financial expenses, net |
Other comprehensive income (loss) |
|||||||||||||||
Nine months ended, |
Nine months ended, |
|||||||||||||||
September 30, 2025 |
September 30, 2024 |
September 30, 2025 |
September 30, 2024 |
|||||||||||||
(U.S. $ in millions) |
||||||||||||||||
Reported under |
||||||||||||||||
Line items in which effects of hedges are recorded |
$ | $ | $ | $ | ( |
) | ||||||||||
Cross-currency interest rate swap—cash flow hedge (1) |
( |
) | ||||||||||||||
Financial expenses, net |
Net revenues |
|||||||||||||||
Three months ended, |
Three months ended, |
|||||||||||||||
September 30, 2025 |
September 30, 2024 |
September 30, 2025 |
September 30, 2024 |
|||||||||||||
Reported under |
(U.S. $ in millions) |
|||||||||||||||
Line items in which effects of hedges are recorded |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||
Option and forward contracts (2) |
||||||||||||||||
Option and forward contracts economic hedge (3) |
( |
) | ||||||||||||||
Financial expenses, net |
Net revenues |
|||||||||||||||
Nine months ended, |
Nine months ended, |
|||||||||||||||
September 30, 2025 |
September 30, 2024 |
September 30, 2025 |
September 30, 2024 |
|||||||||||||
| Reported under |
(U.S. $ in millions) |
|||||||||||||||
| Line items in which effects of hedges are recorded |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||
| Option and forward contracts (2) |
( |
) | ||||||||||||||
| Option and forward contracts economic hedge (3) |
( |
) | ||||||||||||||
| (1) | In May 2025, Teva entered into a $ |
| (2) | Teva uses foreign exchange contracts (mainly option and forward contracts) to hedge balance sheet items from currency exposure. These foreign exchange contracts are not designated as hedging instruments for accounting purposes. In connection with these foreign exchange contracts, Teva recognizes gains or losses that offset the revaluation of the balance sheet items also recorded under financial expenses, net. |
| (3) | Teva entered into option and forward contracts designed to limit the exposure of foreign exchange fluctuations on projected revenues and expenses recorded in euro, Swiss franc, British pound, Russian ruble, Canadian dollar, Polish złoty, new Israeli shekel, Indian rupee and some other currencies to protect its projected operating results for 2025 and 2026. These derivative instruments do not meet the criteria for hedge accounting, however, they are accounted for as an economic hedge. These derivative instruments, which may include hedging transactions of future projected revenues and expenses, are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. In the three months ended September 30, 2025, the positive impact from these derivatives recognized under revenues was $ |
e. |
Amortizations due to terminated derivative instruments: |
f. |
Securitization: |
g. |
Supplier Finance Program Obligation |
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||
2025 |
2024 |
2025 |
2024 |
|||||||||||||
(U.S. $ in millions) |
(U.S. $ in millions) |
|||||||||||||||
Impairments of long-lived tangible assets (*) |
$ | $ | ( |
) | $ | $ | ||||||||||
Contingent consideration |
||||||||||||||||
Restructuring |
||||||||||||||||
Other |
( |
) | ||||||||||||||
Total |
$ | $ | ( |
) | $ | $ | ||||||||||
| (*) | Including impairments related to exit and disposal activities. |
Three months ended September 30, |
||||||||
2025 |
2024 |
|||||||
(U.S. $in millions) |
||||||||
Restructuring |
||||||||
Employee termination |
$ | $ | ||||||
Other |
||||||||
Total |
$ | $ | ||||||
Nine months ended September 30, |
||||||||
2025 |
2024 |
|||||||
(U.S. $in millions) |
||||||||
Restructuring |
||||||||
Employee termination |
$ | $ | ||||||
Other |
||||||||
Total |
$ | $ | ||||||
Employee termination costs |
Other |
Total |
||||||||||
(U.S. $in millions) |
||||||||||||
Balance as of January 1, 2025 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Provision |
( |
) | ( |
) | ( |
) | ||||||
Utilization and other* |
||||||||||||
Balance as of September 30, 2025 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Employee termination costs |
Other |
Total |
||||||||||
(U.S. $in millions) |
||||||||||||
Balance as of January 1, 2024 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Provision |
( |
) | ( |
) | ( |
) | ||||||
Utilization and other* |
||||||||||||
Balance as of September 30, 2024 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
| * | Includes adjustments for foreign currency translation. |
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
(U.S. $ in millions except per share amounts) |
2025 |
2024 |
2025 |
2024 |
||||||||||||
Basic earnings (loss) attributable to Teva’s ordinary shareholders (numerator): |
||||||||||||||||
Net income (loss) attributable to Teva’s ordinary shareholders |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Shares (denominator): |
||||||||||||||||
Weighted average shares outstanding |
||||||||||||||||
Basic earnings (loss) attributable to Teva’s ordinary shareholders |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Diluted earnings (loss) attributable to Teva’s ordinary shareholders (numerator): |
||||||||||||||||
Net income (loss) attributable to Teva’s ordinary shareholders |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Shares (denominator): |
||||||||||||||||
Weighted average shares outstanding |
||||||||||||||||
Diluted effect of stock options, RSUs and PSUs |
— | — | ||||||||||||||
Total dilutive shares outstanding |
||||||||||||||||
Diluted earnings (loss) attributable to Teva’s ordinary shareholders |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
Net Unrealized Gains (Losses) |
Benefit Plans |
|||||||||||||||
Foreign currency translation adjustments |
Derivative financial instruments |
Actuarial gains (losses) and prior service (costs) credits |
Total |
|||||||||||||
(U.S. $ in millions) |
||||||||||||||||
Balance as of December 31, 2024, net of taxes |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Other comprehensive income (loss) before reclassifications |
— | |||||||||||||||
Amounts reclassified to the statements of income |
— | ( |
) | |||||||||||||
Release of cumulative translation adjustments** |
— | — | ||||||||||||||
Net other comprehensive income (loss) before tax |
( |
) | ||||||||||||||
Corresponding income tax |
— | — | ||||||||||||||
Net other comprehensive income (loss) after tax* |
( |
) | ||||||||||||||
Balance as of September 30, 2025, net of taxes |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| * | Amounts do not include a $ non-redeemable non-controlling interests. |
| ** | In connection with the sale of Teva’s business venture in Japan. |
Net Unrealized Gains (Losses) |
Benefit Plans |
|||||||||||||||
Foreign currency translation adjustments |
Derivative financial instruments |
Actuarial gains (losses) and prior service (costs) credits |
Total |
|||||||||||||
(U.S. $ in millions) |
||||||||||||||||
Balance as of December 31, 2023, net of taxes |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Other comprehensive income (loss) before reclassifications |
( |
) | ( |
) | ||||||||||||
Amounts reclassified to the statements of income |
— | ( |
) | |||||||||||||
Net other comprehensive income (loss) before tax |
( |
) | ( |
) | ( |
) | ||||||||||
Corresponding income tax |
( |
) | — | — | ( |
) | ||||||||||
Net other comprehensive income (loss) after tax* |
( |
) | ( |
) | ( |
) | ||||||||||
Balance as of September 30, 2024, net of taxes |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| * | Amounts do not include a $ non-controlling interests. |
| (a) | United States segment. |
| (b) | Europe segment, which includes the European Union, the United Kingdom and certain other European countries. |
| (c) | International Markets segment, which includes all countries other than the United States and countries included in the Europe segment. |
a. |
Segment information: |
Three months ended September 30, |
||||||||||||
2025 |
||||||||||||
United States |
Europe |
International Markets |
||||||||||
(U.S. $ in millions) |
||||||||||||
Revenues |
$ | $ | $ | |||||||||
Cost of sales |
||||||||||||
R&D expenses |
||||||||||||
S&M expenses |
||||||||||||
G&A expenses |
||||||||||||
Other |
( |
) | § | § | ||||||||
Segment profit |
$ | $ | $ | |||||||||
| § | Represents an amount less than $0.5 million. |
Three months ended September 30, |
||||||||||||
2024 |
||||||||||||
United States |
Europe |
International Markets |
||||||||||
(U.S. $ in millions) |
||||||||||||
Revenues |
$ | $ | $ | |||||||||
Cost of sales |
||||||||||||
R&D expenses |
||||||||||||
S&M expenses |
||||||||||||
G&A expenses |
||||||||||||
Other |
§ | § | ||||||||||
Segment profit |
$ | $ | $ | |||||||||
| § | Represents an amount less than $0.5 million. |
Nine months ended September 30, |
||||||||||||
2025 |
||||||||||||
United States |
Europe |
International Markets |
||||||||||
(U.S. $ in millions) |
||||||||||||
Revenues |
$ | $ | $ | |||||||||
Cost of sales |
||||||||||||
R&D expenses |
||||||||||||
S&M expenses |
||||||||||||
G&A expenses |
||||||||||||
Other |
( |
) | § | ( |
) | |||||||
Segment profit |
$ | $ | $ | |||||||||
| § | Represents an amount less than $0.5 million. |
Nine months ended September 30, |
||||||||||||
2024 |
||||||||||||
United States |
Europe |
International Markets |
||||||||||
(U.S. $ in millions) |
||||||||||||
Revenues |
$ | $ | $ | |||||||||
Cost of sales |
||||||||||||
R&D expenses |
||||||||||||
S&M expenses |
||||||||||||
G&A expenses |
||||||||||||
Other |
( |
) | ( |
) | ||||||||
Segment profit |
$ | $ | $ | |||||||||
Three months ended |
Nine months ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2025 |
2024 |
2025 |
2024 |
|||||||||||||
(U.S. $ in millions) |
(U.S. $ in millions) |
|||||||||||||||
United States profit |
$ | $ | $ | $ | ||||||||||||
Europe profit |
||||||||||||||||
International Markets profit |
||||||||||||||||
Total reportable segments profit |
||||||||||||||||
Profit (loss) of other activities |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Amounts not allocated to segments: |
||||||||||||||||
Amortization |
||||||||||||||||
Other assets impairments, restructuring and other items |
( |
) | ||||||||||||||
Goodwill impairment |
||||||||||||||||
Intangible assets impairments |
||||||||||||||||
Legal settlements and loss contingencies |
||||||||||||||||
Other unallocated amounts |
||||||||||||||||
Consolidated operating income (loss) |
( |
) | ( |
) | ||||||||||||
Financial expenses, net |
||||||||||||||||
Consolidated income (loss) before income taxes |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
United States |
Three months ended September 30, |
|||||||
2025 |
2024 |
|||||||
(U.S. $ in millions) |
||||||||
Generic products (including biosimilars) |
$ | $ | ||||||
AJOVY ® |
||||||||
AUSTEDO |
||||||||
BENDEKA ® and TREANDA® |
||||||||
COPAXONE |
||||||||
UZEDY |
||||||||
Anda |
||||||||
Other |
||||||||
Total |
$ | $ | ||||||
United States |
Nine months ended September 30, |
|||||||
2025 |
2024 |
|||||||
(U.S. $ in millions) |
||||||||
Generic products (including biosimilars) |
$ | $ | ||||||
AJOVY |
||||||||
AUSTEDO |
||||||||
BENDEKA and TREANDA |
||||||||
COPAXONE |
||||||||
UZEDY |
||||||||
Anda |
||||||||
Other |
||||||||
Total |
$ | $ | ||||||
Europe |
Three months ended September 30, |
|||||||
2025 |
2024 |
|||||||
(U.S. $ in millions) |
||||||||
Generic products (including OTC and biosimilars) |
$ | $ | ||||||
AJOVY |
||||||||
COPAXONE |
||||||||
Respiratory products |
||||||||
Other* |
||||||||
Total |
$ | $ | ||||||
| * | Other revenues in the third quarter of 2025 and 2024 include the sale of certain product rights. |
Europe |
Nine months ended September 30, |
|||||||
2025 |
2024 |
|||||||
(U.S. $ in millions) |
||||||||
Generic products (including OTC and biosimilars) |
$ |
$ |
||||||
AJOVY |
||||||||
COPAXONE |
||||||||
Respiratory products |
||||||||
Other* |
||||||||
Total |
$ | $ | ||||||
| * | Other revenues in the first nine months of 2025 and 2024 include the sale of certain product rights. |
International markets |
Three months ended September 30, |
|||||||
2025 |
2024 |
|||||||
(U.S. $ in millions) |
||||||||
Generic products (including OTC and biosimilars) |
$ |
$ |
||||||
AJOVY |
||||||||
AUSTEDO |
||||||||
COPAXONE |
||||||||
Other* |
||||||||
Total |
$ | $ | ||||||
| * | Other revenues in the third quarter of 2025 and 2024 include the sale of certain product rights. |
International markets |
Nine months ended September 30, |
|||||||
2025 |
2024 |
|||||||
(U.S. $ in millions) |
||||||||
Generic products (including OTC and biosimilars) |
$ | $ | ||||||
AJOVY |
||||||||
AUSTEDO |
||||||||
COPAXONE |
||||||||
Other* |
||||||||
Total |
$ | $ | ||||||
| * | Other revenues in the first nine months of 2025 and 2024 include the sale of certain product rights. |
September 30, 2025 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
(U.S. $ in millions) |
||||||||||||||||
Cash and cash equivalents: |
||||||||||||||||
Money markets |
$ | $ | — | $ | — | $ | ||||||||||
Cash, deposits and other |
— | — | ||||||||||||||
Investment in securities: |
||||||||||||||||
Equity securities |
— | — | ||||||||||||||
Other |
— | — | ||||||||||||||
Derivatives: |
||||||||||||||||
Asset derivatives: |
||||||||||||||||
Options and forward contracts |
— | — | ||||||||||||||
Liability derivatives: |
||||||||||||||||
Options and forward contracts |
— | ( |
) | — | ( |
) | ||||||||||
Cross currency interest rate swap |
— | ( |
) | — | ( |
) | ||||||||||
Bifurcated embedded derivatives |
— | — | § | — | ||||||||||||
Contingent consideration* |
— | — | ( |
) | ( |
) | ||||||||||
Total |
$ | $ | $ | ( |
) | $ | ||||||||||
December 31, 2024 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
(U.S. $ in millions) |
||||||||||||||||
Cash and cash equivalents: |
||||||||||||||||
Money markets |
$ | $ | — | $ | — | $ | ||||||||||
Cash, deposits and other |
— | — | ||||||||||||||
Investment in securities: |
||||||||||||||||
Equity securities |
— | — | ||||||||||||||
Other |
— | — | ||||||||||||||
Derivatives: |
||||||||||||||||
Asset derivatives: |
||||||||||||||||
Options and forward contracts |
— | — | ||||||||||||||
Liability derivatives: |
||||||||||||||||
Options and forward contracts |
— | ( |
) | — | ( |
) | ||||||||||
Bifurcated embedded derivatives |
— | — | § | — | ||||||||||||
Contingent consideration* |
$ | — | — | ( |
) | ( |
) | |||||||||
Total |
$ | $ | ( |
) | $ | |||||||||||
| § | Represents an amount less than $0.5 million. |
| * | Contingent consideration represents liabilities recorded at fair value in connection with acquisitions. |
Nine months ended September 30, 2025 |
Nine months ended September 30, 2024 |
|||||||
(U.S. $ in millions) |
||||||||
Fair value at the beginning of the period |
$ | ( |
) | ( |
) | |||
Redemption of convertible bond security* |
— | ( |
) | |||||
Bifurcated embedded derivatives |
§ | |||||||
Adjustments to provisions for contingent consideration: |
||||||||
Allergan transaction |
( |
) | ( |
) | ||||
Eagle transaction |
( |
) | ( |
) | ||||
Novetide transaction |
( |
) | ( |
) | ||||
Settlement of contingent consideration: |
||||||||
Allergan transaction |
||||||||
Eagle transaction |
||||||||
Novetide transaction |
||||||||
Fair value at the end of the period |
$ | ( |
) | $ | ( |
) | ||
| § | Represents an amount less than $0.5 million. |
| * | On September 29, 2023, Teva purchased $ |
Estimated fair value* |
||||||||
September 30, 2025 |
December 31, 2024 |
|||||||
(U.S. $ in millions) |
||||||||
Senior notes and sustainability-linked senior notes included under senior notes and loans |
$ | $ | ||||||
Senior notes and convertible senior debentures included under short-term debt |
||||||||
Total |
$ | $ | ||||||
| * | The fair value was estimated based on quoted market prices. |
Redeemable non-controlling interests |
||||
(U.S. $ in millions) |
||||
Balance as of December 31, 2024 |
$ | |||
Changes during the period: |
||||
Share in comprehensive income (loss) |
||||
Dividend payment |
( |
) | ||
Purchase of shares from redeemable non-controlling interests |
( |
) | ||
Other adjustments related to redeemable non-controlling interests |
||||
Balance as of September 30, 2025 |
$ | |||
Table of Contents
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Business Overview
We are transforming into a leading innovative biopharmaceutical company, enabled by a world-class generics business. For over 120 years, our commitment to bettering health has never wavered. From innovating in the fields of neuroscience and immunology to providing complex generic medicines, biosimilars and pharmacy brands worldwide, we are dedicated to addressing patients’ needs, now and in the future.
Teva was incorporated in Israel on February 13, 1944 and is the successor to a number of Israeli corporations, the oldest of which was established in 1901.
Our Business Segments
We operate our business through three segments: United States, Europe and International Markets. Each business segment manages our entire product portfolio in its region, including generics, which includes biosimilars and OTC products, as well as innovative medicines. This structure enables strong alignment and integration between operations, commercial regions, R&D and our global marketing and portfolio function, optimizing our product lifecycle across therapeutic areas.
In addition to these three segments, we have other activities, primarily the sale of API to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Such activities are included under “Other Activities” below. For additional segment information, see note 15 to our consolidated financial statements.
Pivot to Growth Strategy
In the third quarter of 2025, we continued to execute on the four key pillars of our “Pivot to Growth” strategy, announced in May 2023, which entered into its second phase in 2025. During this second phase of “Accelerate Growth,” we expect to focus on growing our innovative portfolio, aligning capital allocation to invest in activities we expect to have the highest value, and modernizing our organization and operations to drive both efficiency and cost savings. Under Teva’s Transformation programs announced on May 7, 2025, we expect to achieve such cost savings through a variety of initiatives including examining practices and efficiencies in methods of working, reduction in headcount and optimizing external spend in the following years.
Macroeconomic Environment
In recent years, the global economy has been impacted by fluctuating foreign exchange rates. In the third quarter of 2025, a significant portion of our revenues were denominated in currencies other than the U.S. dollar and we manufacture many of our products outside of the United States. Fluctuations in the U.S. dollar versus other currencies in which we operate have in the past and may in the future materially impact our revenues, results of operations, profits and cash flows. Additionally, in recent years, in many of the markets in which we operate, we experienced higher levels of inflation resulting in higher interest rates, though in certain other markets, such as the EU, we recently experienced a decrease in inflation which resulted in lower interest rates. Although inflationary and other macroeconomic pressures have and may continue to ease, the higher costs we have experienced during recent periods have already impacted our operations and may continue to have an effect on our financial results. Recent U.S. tariffs imposed or threatened to be imposed on materials and products from countries where we do business and any responsive or reciprocal actions taken by such countries could impact our costs and our global operations. The countries which will be subject to tariffs and the tariff rate that may be imposed on each country is uncertain and dynamic, and we continue to monitor and assess the potential impact on our supply chain and global operations.
Highlights
Significant highlights in the third quarter of 2025 included:
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| • | Revenues in the third quarter of 2025 were $4,480 million, an increase of 3% in U.S. dollars, or 1% in local currency terms compared to the third quarter of 2024. This increase was mainly due to higher revenues from AUSTEDO and from generic products including biosimilars in our U.S. segment, partially offset by lower revenues from generic products in our International Markets segment due to the divestment of our business venture in Japan, from generic products in our Europe segment and from certain other innovative products across all our segments, as well as lower year-over-year proceeds from the sale of certain product rights. |
| • | Our U.S. segment generated revenues of $2,483 million and segment profit of $937 million in the third quarter of 2025. Revenues increased by 12% and segment profit increased by 25%, compared to the third quarter of 2024. |
| • | Our Europe segment generated revenues of $1,235 million and segment profit of $303 million in the third quarter of 2025. Revenues decreased by 2% in U.S. dollars, or 10% in local currency terms, compared to the third quarter of 2024. Segment profit decreased by 19%, compared to the third quarter of 2024. |
| • | Our International Markets segment generated revenues of $557 million and segment profit of $95 million in the third quarter of 2025. Revenues decreased by 9% in U.S. dollars, or 10% in local currency terms, compared to the third quarter of 2024. Segment profit decreased by 13%, compared to the third quarter of 2024. |
| • | Our revenues from other activities in the third quarter of 2025 were $205 million, a decrease of 10% in U.S. dollars, or 13% in local currency terms, compared to the third quarter of 2024. |
| • | Exchange rate movements during the third quarter of 2025, including hedging effects, positively impacted our revenues by $106 million, compared to the third quarter of 2024. |
| • | Gross profit margin was 51.4% in the third quarter of 2025, compared to 49.6% in the third quarter of 2024. |
| • | R&D expenses, net in the third quarter of 2025 were $256 million, an increase of 7%, compared to $240 million in the third quarter of 2024. |
| • | Impairments of identifiable intangible assets were $64 million in the third quarter of 2025, compared to $28 million in the third quarter of 2024. See note 5 to our consolidated financial statements. |
| • | We recorded legal settlements and loss contingencies of $60 million in the third quarter of 2025, compared to $450 million in the third quarter of 2024. See note 9 to our consolidated financial statements. |
| • | Operating income was $882 million in the third quarter of 2025, compared to an operating loss of $51 million in the third quarter of 2024. |
| • | In the third quarter of 2025, we recognized a tax expense of $214 million, on a pre-tax income of $646 million. In the third quarter of 2024, we recognized a tax expense of $69 million, on a pre-tax loss of $324 million. See note 11 to our consolidated financial statements. |
| • | As of September 30, 2025, our debt was $16,790 million, compared to $17,783 million as of December 31, 2024. See note 7 to our consolidated financial statements. |
| • | Cash flow generated from operating activities during the third quarter of 2025 was $369 million, compared to $693 million in the third quarter of 2024. The lower cash flow generated from operating activities in the third quarter of 2025 was mainly due to timing of sales and collections, as well as higher legal settlement payments, partially offset by lower tax payments and higher profit. |
| • | During the third quarter of 2025, we generated free cash flow of $515 million, which we define as comprising $369 million in cash flow generated from operating activities, $274 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program) and $8 million of proceeds from divestitures of businesses and other assets, partially offset by $136 million in cash used for capital investment. During the third quarter of 2024, we generated free cash flow of $922 million. The decrease in the third quarter of 2025 mainly resulted from lower cash flow generated from operating activities, as well as a decrease in proceeds from divestitures of businesses and other assets. |
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Results of Operations
Comparison of Three Months Ended September 30, 2025 to Three Months Ended September 30, 2024
Segment Information
United States Segment
The following table presents revenues, expenses and profit for our United States segment for the three months ended September 30, 2025 and 2024:
| Three months ended September 30, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| (U.S. $ in millions / % of Segment Revenues) |
||||||||||||||||
| Revenues |
$ | 2,483 | 100 | % | $ | 2,225 | 100 | % | ||||||||
| Cost of sales |
996 | 40.1 | % | 960 | 43.1 | % | ||||||||||
| Gross profit |
1,486 | 59.9 | % | 1,265 | 56.9 | % | ||||||||||
| R&D expenses |
161 | 6.5 | % | 151 | 6.8 | % | ||||||||||
| S&M expenses |
278 | 11.2 | % | 259 | 11.6 | % | ||||||||||
| G&A expenses |
114 | 4.6 | % | 107 | 4.8 | % | ||||||||||
| Other |
(3 | ) | § | § | § | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment profit* |
$ | 937 | 37.7 | % | $ | 748 | 33.6 | % | ||||||||
| * | Segment profit does not include amortization and certain other items. |
| § | Represents an amount less than $0.5 million or 0.5%, as applicable. |
United States Revenues
Revenues from our United States segment in the third quarter of 2025 were $2,483 million, an increase of $257 million, or 12%, compared to the third quarter of 2024. This increase was mainly due to higher revenues from our key innovative products, primarily AUSTEDO, and generic products including biosimilars.
Revenues by Major Products and Activities
The following table presents revenues for our United States segment by major products and activities for the three months ended September 30, 2025 and 2024:
| Three months ended September 30, |
Percentage Change 2025-2024 |
|||||||||||
| 2025 | 2024 | |||||||||||
| (U.S. $ in millions) | ||||||||||||
| Generic products (including biosimilars) |
$ | 1,175 | $ | 1,094 | 7 | % | ||||||
| AJOVY |
73 | 58 | 27 | % | ||||||||
| AUSTEDO |
601 | 435 | 38 | % | ||||||||
| BENDEKA and TREANDA |
35 | 40 | (13 | %) | ||||||||
| COPAXONE |
62 | 69 | (9 | %) | ||||||||
| UZEDY |
43 | 35 | 24 | % | ||||||||
| Anda |
392 | 380 | 3 | % | ||||||||
| Other |
101 | 115 | (13 | %) | ||||||||
|
|
|
|
|
|||||||||
| Total |
$ | 2,483 | $ | 2,225 | 12 | % | ||||||
|
|
|
|
|
|||||||||
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Generic products (including biosimilars) revenues in our United States segment in the third quarter of 2025 were $1,175 million, an increase of 7% compared to the third quarter of 2024. This increase was mainly driven by higher revenues from our portfolio of biosimilar products.
Among the most significant generic products we sold in the United States in the third quarter of 2025 were lenalidomide capsules (the generic version of Revlimid®), epinephrine injectable solution (the generic equivalent of EpiPen® and EpiPen Jr®) and Truxima® (the biosimilar to Rituxan®). In the third quarter of 2025, our total prescriptions were approximately 261 million (based on trailing twelve months), representing 6.7% of total U.S. generic prescriptions, compared to approximately 292 million (based on trailing twelve months), representing 7.6% of total U.S. generic prescriptions in the third quarter of 2024, all according to IQVIA data.
On August 28, 2025, we announced the FDA approval and launch in the U.S. of liraglutide injection (the generic version of Saxenda®), which is the first generic GLP-1 indicated for weight loss. Liraglutide injection is a glucagon like peptide 1 (GLP-1) receptor agonist indicated in combination with a reduced calorie diet and increased physical activity to reduce excess body weight and maintain weight reduction long-term in adult and pediatric patients aged 12 years and older.
AJOVY revenues in our United States segment in the third quarter of 2025 were $73 million, an increase of 27% compared to the third quarter of 2024, mainly due to growth in volume. In the third quarter of 2025, AJOVY’s exit market share in the United States in terms of total number of prescriptions was 32.0% out of the subcutaneous injectable anti-CGRP class, compared to 29.1% in the third quarter of 2024.
AJOVY was launched in the U.S. in 2018 for the preventive treatment of migraine in adults. In August 2025, the FDA approved AJOVY for the preventive treatment of episodic migraine in children and adolescent patients aged 6 to 17 years. AJOVY is the only anti-CGRP subcutaneous product indicated for both quarterly and monthly dosing options.
AJOVY is protected worldwide by patents expiring in 2026 at the earliest; extensions have been granted in several countries, including the United States and in Europe, until 2031. Additional patents relating to the use of AJOVY in the treatment of migraine have also been issued in the United States and Europe and will expire between 2035 and 2039. Such patents are also pending in other countries. AJOVY will also be protected by regulatory exclusivity for 12 years from marketing approval in the United States (obtained in September 2018) and 10 years from marketing approval in Europe (obtained in April 2019). For our patent litigation related to other anti-CGRP products, see note 10 to our consolidated financial statement.
AUSTEDO revenues (which include AUSTEDO XR®) in our United States segment in the third quarter of 2025 were $601 million, an increase of 38%, compared to $435 million in the third quarter of 2024. This increase was mainly due to growth in volume.
During the third quarter of 2025, Teva and the Centers for Medicare and Medicaid Services (“CMS”) negotiated a maximum fair price for the AUSTEDO products, based on CMS’s list of prescription medicines selected for price-setting discussions, in which they were originally included. The agreement is expected to be announced by CMS in November 2025. The revised prices set by the U.S. Government will become effective January 1, 2027 and will apply to eligible Medicare patients.
AUSTEDO was launched in the U.S. in 2017. It is indicated for the treatment of chorea associated with Huntington’s disease and for the treatment of tardive dyskinesia in adults.
AUSTEDO is protected in the United States by 14 Orange Book patents expiring between 2031 and 2038. We received notice letters from two ANDA filers regarding the filing of their ANDAs with paragraph (IV) certifications for certain of the patents listed in the Orange Book for AUSTEDO. In 2022, we reached agreements with Lupin and Aurobindo, respectively, to sell their generic products beginning in April 2033, or earlier under certain circumstances. On March 9, 2022, the U.S. Patent and Trial Appeal Board of the U.S. Patent and Trademark Office declined to institute an IPR filed by Apotex regarding the deutetrabenazine compound patent. Currently, there are no further patent litigations pending regarding AUSTEDO.
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AUSTEDO XR (deutetrabenazine) extended-release tablets was approved by the FDA on February 17, 2023 in three doses of 6, 12 and 24 mg, and became commercially available in the U.S. in May 2023. The FDA approved AUSTEDO XR as a one pill, once-daily treatment option in doses of 30, 36, 42, and 48 mg in May 2024 and in 18 mg dose in July 2024. AUSTEDO XR is a once-daily formulation indicated in adults for tardive dyskinesia and chorea associated with Huntington’s disease, which is additional to the currently marketed twice-daily AUSTEDO. AUSTEDO XR is protected by 11 Orange Book patents expiring between 2031 and 2041.
UZEDY (risperidone) extended-release injectable suspension revenues in our United States segment in the third quarter of 2025 were $43 million, an increase of 24% compared to the third quarter of 2024, mainly due to growth in volume.
UZEDY was approved by the FDA on April 28, 2023 for the treatment of schizophrenia in adults, and was launched in the U.S. in May 2023. UZEDY is a subcutaneous, long-acting formulation that controls the steady release of risperidone. UZEDY is protected by six Orange Book patents expiring between 2027 and 2042. On October 10, 2025, it was announced that the FDA approved UZEDY as a once-monthly extended-release injectable suspension as monotherapy or as adjunctive therapy to lithium or valproate for the maintenance treatment of bipolar 1 disorder (BD-1) in adults. UZEDY is protected by regulatory exclusivity until April 28, 2026. We are evaluating plans to launch UZEDY in other countries around the world. UZEDY faces competition from multiple products.
BENDEKA and TREANDA combined revenues in our United States segment in the third quarter of 2025 were $35 million, a decrease of 13% compared to the third quarter of 2024, mainly due to competition from alternative therapies, as well as from generic bendamustine products.
In April 2019, we signed an amendment to the license agreement with Eagle extending the royalty term applicable to the United States to the full period for which we sell BENDEKA and increased the royalty rate. In consideration, Eagle agreed to assume a portion of BENDEKA-related patent litigation expenses.
There are 20 patents listed in the U.S. Orange Book for BENDEKA with expiration dates in 2026 and 2031. In August 2021, the Court of Appeals for the Federal Circuit affirmed the district court’s decision upholding the validity of all of the asserted patents and finding infringement by two remaining ANDA filers. Another ANDA filer did not join the appeal, and Teva also settled with two ANDA filers.
Teva also settled litigation against three 505(b)(2) applicants, Hospira, Inc. (“Hospira”), Dr. Reddy’s Laboratories (“DRL”) and Accord Healthcare (“Accord”). Based on these settlement agreements, Hospira, Accord and DRL can launch their products on November 17, 2027, or earlier under certain circumstances. In 2023, Teva and Eagle also filed suit against BendaRx Corp. in the U.S. District Court for the District of Delaware, following its filing of a 505(b)(2) NDA for a bendamustine product, and that litigation is still pending. Similarly, on September 18, 2025, Teva and Eagle filed suit against Almaject, Inc. and Alvogen, Inc. in the District of Delaware following the filing of another 505(b)(2) NDA for a generic BENDEKA product.
In addition to the settlement with Eagle regarding its bendamustine 505(b)(2) NDA, between 2015 and 2020, we reached final settlements with 22 ANDA filers for generic versions of the lyophilized form of TREANDA and one 505(b)(2) NDA filer for a generic version of the liquid form of TREANDA, providing for the launch of generic versions of TREANDA prior to patent expiration. Currently, there are multiple generic TREANDA products on the market.
COPAXONE revenues in our United States segment in the third quarter of 2025 were $62 million, a decrease of 9% compared to the third quarter of 2024, mainly due to competition.
The market for multiple sclerosis treatments continues to develop, particularly with the approval of generic versions of COPAXONE. Oral branded and generic treatments for multiple sclerosis, continue to present significant and increasing competition. COPAXONE also continues to face competition from existing injectable products, as well as from monoclonal antibodies.
Anda revenues from third-party products in our United States segment in the third quarter of 2025 were $392 million, an increase of 3%, compared to $380 million in the third quarter of 2024. This increase was mainly due to higher volumes. Anda, our distribution business in the United States, distributes generic and innovative medicines and OTC pharmaceutical products from Teva and various third-party manufacturers to independent retail pharmacies, pharmacy retail chains, hospitals and physician offices in the United States.
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Anda competes in the distribution market by maintaining a broad portfolio of products, competitive pricing and delivery throughout the United States.
Product Launches and Pipeline
In the third quarter of 2025, we launched the generic version of the following branded products in the United States:
| Product Name |
Brand Name |
Launch Date |
Total Annual U.S. Branded Sales at Time of Launch (U.S. $ in millions (IQVIA))* |
|||||
| Dasatinib Tablets |
Sprycel® Tablets | September | $ | 1,366 | ||||
| Fidaxomicin Tablets |
Dificid® tablets | July | $ | 410 | ||||
| Liraglutide Injection |
Saxenda® injection | August | $ | 164 | ||||
| Azelastine Hydrochloride and Fluticasone Propionate Nasal Spray |
Dymista® Nasal Spray | September | $ | 69 | ||||
| * | The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or re-launch. |
As of September 30, 2025, our generic products pipeline in the United States includes 123 product applications awaiting FDA approval, including 68 tentative approvals. This total reflects all pending ANDAs, supplements for product line extensions and tentatively approved applications and includes some instances where more than one application was submitted for the same reference product. Excluding overlaps, the branded products underlying these pending applications had U.S. sales for the twelve months ended June 30, 2025 of approximately $123 billion, according to IQVIA. Approximately 74% of pending applications include a paragraph IV patent challenge, and we believe we are first-to-file with respect to 55 of these products, or 80 products including final approvals where launch is pending a settlement agreement or court decision. Collectively, these first-to-file opportunities represent over $76 billion in U.S. brand sales for the twelve months ended June 30, 2025, according to IQVIA.
IQVIA reported brand sales are one of the many indicators of future potential value of a launch, but equally important are the mix and timing of competition, as well as cost effectiveness. The potential advantages of being the first filer with respect to some of these products may be either forfeited, or subject to shared exclusivity or competition from so-called “authorized generics,” which may ultimately affect the value derived.
In the third quarter of 2025, we received tentative approvals for generic equivalents of the products listed in the table below, excluding overlapping applications. A “tentative approval” indicates that the FDA has substantially completed its review of an application and final approval is expected once the relevant patent expires, a court decision is reached, a 30-month regulatory stay lapses or a 180-day exclusivity period awarded to another manufacturer either expires or is forfeited.
| Generic Name |
Brand Name | Total Annual U.S. Branded Sales at Time of Launch (U.S. $ in millions (IQVIA))* |
||||
| Nintedanib Capsules, 100 mg and 150 mg |
Ofev® | $ | 3,280 | |||
| Macitentan Tablets |
Opsumit® | $ | 1,181 | |||
| Elagolix, Estradiol and Norethindrone Acetate Capsules, 300 mg / 1 mg / 0.5 mg; Elagolix Capsules, 300 mg |
Oriahnn® | $ | 11 | |||
| * | The figures presented are for the twelve months ended in the calendar quarter immediately prior to our launch or re-launch. |
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For information regarding our innovative and biosimilar products pipeline, see “—Teva Consolidated Results—Research and Development (R&D) Expenses, net” below.
United States Gross Profit
Gross profit from our United States segment in the third quarter of 2025 was $1,486 million, an increase of 17%, compared to $1,265 million in the third quarter of 2024.
Gross profit margin for our United States segment in the third quarter of 2025 increased to 59.9%, compared to 56.9% in the third quarter of 2024. This increase was mainly due to a favorable mix of products primarily driven by higher revenues from AUSTEDO.
United States R&D Expenses
R&D expenses relating to our United States segment in the third quarter of 2025 were $161 million, an increase of 6%, compared to $151 million in the third quarter of 2024.
For a description of our R&D expenses in the third quarter of 2025, see “—Teva Consolidated Results—Research and Development (R&D) Expenses, net” below.
United States S&M Expenses
S&M expenses relating to our United States segment in the third quarter of 2025 were $278 million, an increase of 8%, compared to $259 million in the third quarter of 2024. This increase was mainly due to promotional activities related to our key innovative products.
United States G&A Expenses
G&A expenses relating to our United States segment in the third quarter of 2025 were $114 million, an increase of 6% compared to $107 million in the third quarter of 2024.
For a description of our G&A expenses in the third quarter of 2025, see “—Teva Consolidated Results—General and Administrative (G&A) Expenses” below.
United States Profit
Profit from our United States segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.
Profit from our United States segment in the third quarter of 2025 was $937 million, an increase of 25% compared to $748 million in the third quarter of 2024. This increase was mainly due to higher gross profit, as discussed above.
Europe Segment
The following table presents revenues, expenses and profit for our Europe segment for the three months ended September 30, 2025 and 2024:
| Three months ended September 30, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| (U.S. $ in millions / % of Segment Revenues) |
||||||||||||||||
| Revenues |
$ | 1,235 | 100 | % | $ | 1,265 | 100 | % | ||||||||
| Cost of sales |
570 | 46.1 | % | 566 | 44.8 | % | ||||||||||
| Gross profit |
665 | 53.9 | % | 698 | 55.2 | % | ||||||||||
| R&D expenses |
62 | 5.0 | % | 55 | 4.3 | % | ||||||||||
| S&M expenses |
225 | 18.2 | % | 203 | 16.0 | % | ||||||||||
| G&A expenses |
75 | 6.1 | % | 67 | 5.3 | % | ||||||||||
| Other |
§ | § | 1 | § | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment profit* |
$ | 303 | 24.5 | % | $ | 373 | 29.5 | % | ||||||||
| * | Segment profit does not include amortization and certain other items. |
| § | Represents an amount less than $0.5 million or 0.5%, as applicable. |
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Europe Revenues
Our Europe segment includes the European Union, the United Kingdom and certain other European countries.
Revenues from our Europe segment in the third quarter of 2025 were $1,235 million, a decrease of 2%, or $30 million, compared to the third quarter of 2024. In local currency terms, revenues decreased by 10% compared to the third quarter of 2024, mainly due to higher proceeds from the sale of certain product rights in the third quarter of 2024, and lower revenues from generic products, partially offset by higher revenues from AJOVY.
In the third quarter of 2025, revenues were positively impacted by exchange rate fluctuations of $91 million, including hedging effects, compared to the third quarter of 2024. Revenues in the third quarter of 2025, included $6 million from a positive hedging impact, which is included in “Other” in the table below. Revenues in the third quarter of 2024 included $10 million from a negative hedging impact, which is included in “Other” in the table below. See note 8d to our consolidated financial statements.
Revenues by Major Products and Activities
The following table presents revenues for our Europe segment by major products and activities for the three months ended September 30, 2025 and 2024:
| Three months ended September 30, |
Percentage Change 2025-2024 |
|||||||||||
| 2025 | 2024 | |||||||||||
| (U.S. $ in millions) | ||||||||||||
| Generic products (including OTC and biosimilars) |
$ | 982 | $ | 973 | 1 | % | ||||||
| AJOVY |
66 | 56 | 18 | % | ||||||||
| COPAXONE |
44 | 53 | (18 | %) | ||||||||
| Respiratory products |
52 | 60 | (13 | %) | ||||||||
| Other* |
91 | 124 | (26 | %) | ||||||||
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| Total |
$ | 1,235 | $ | 1,265 | (2 | %) | ||||||
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| * | Other revenues in the third quarter of 2025 and 2024 include the sale of certain product rights. |
Generic products revenues (including OTC and biosimilar products) in our Europe segment in the third quarter of 2025, were $982 million, an increase of 1% compared to the third quarter of 2024. In local currency terms, revenues decreased by 5%, mainly due to lower volumes and price reductions as a result of market dynamics and lower sales of seasonal OTC products, partially offset by higher revenues from recently launched products.
AJOVY revenues in our Europe segment in the third quarter of 2025 increased by 18% to $66 million, compared to $56 million in the third quarter of 2024. In local currency terms revenues increased by 11% due to growth in volume.
For information about AJOVY patent protection, see “—United States Revenues—Revenues by Major Products and Activities” above.
COPAXONE revenues in our Europe segment in the third quarter of 2025 were $44 million, a decrease of 18% compared to the third quarter of 2024. In local currency terms revenues decreased by 23%, due to price reductions and lower volumes resulting from the availability of alternative therapies. In certain countries, Teva remains in litigation against generic companies regarding COPAXONE.
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Respiratory products revenues in our Europe segment in the third quarter of 2025 were $52 million, a decrease of 13% compared to the third quarter of 2024. In local currency terms, revenues decreased by 18%, mainly due to net price reductions and lower volumes associated with the availability of alternative therapies.
Product Launches and Pipeline
As of September 30, 2025, our generic products pipeline in Europe included 496 generic approvals relating to 42 compounds in 87 formulations, with no European Medicines Agency (“EMA”) approvals received. In addition, approximately 1,548 marketing authorization applications are pending approval in 37 European countries, relating to 95 compounds in 216 formulations. No applications are pending with the EMA.
For information regarding our innovative medicines and biosimilar products pipeline, see “—Teva Consolidated Results—Research and Development (R&D) Expenses, net” below.
Europe Gross Profit
Gross profit from our Europe segment in the third quarter of 2025 was $665 million, a decrease of 5% compared to $698 million in the third quarter of 2024.
Gross profit margin for our Europe segment in the third quarter of 2025 decreased to 53.9%, compared to 55.2% in the third quarter of 2024. This decrease was mainly due to higher proceeds from the sale of certain product rights in the third quarter of 2024, and an unfavorable mix of products, partially offset by a positive impact from hedging activities.
Europe R&D Expenses
R&D expenses relating to our Europe segment in the third quarter of 2025 were $62 million, an increase of 12% compared to $55 million in the third quarter of 2024.
For a description of our R&D expenses in the third quarter of 2025, see “—Teva Consolidated Results—Research and Development (R&D) Expenses, net” below.
Europe S&M Expenses
S&M expenses relating to our Europe segment in the third quarter of 2025 were $225 million, an increase of 11% compared to $203 million in the third quarter of 2024. This increase was mainly due to exchange rate fluctuations, as well as to support revenue growth of our generic and key innovative products, including new launches.
Europe G&A Expenses
G&A expenses relating to our Europe segment in the third quarter of 2025 were $75 million, an increase of 12% compared to $67 million in the third quarter of 2024.
For a description of our G&A expenses in the third quarter of 2025, see “—Teva Consolidated Results—General and Administrative (G&A) Expenses” below.
Europe Profit
Profit from our Europe segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.
Profit from our Europe segment in the third quarter of 2025 was $303 million, a decrease of 19%, compared to $373 million in the third quarter of 2024. This decrease was mainly due to lower gross profit and higher S&M expenses, as discussed above.
International Markets Segment
The following table presents revenues, expenses and profit for our International Markets segment for the three months ended September 30, 2025 and 2024:
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| Three months ended September 30, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| (U.S. $ in millions / % of Segment Revenues) |
||||||||||||||||
| Revenues |
$ | 557 | 100 | % | $ | 613 | 100 | % | ||||||||
| Cost of sales |
280 | 50.2 | % | 307 | 50.1 | % | ||||||||||
| Gross profit |
278 | 49.8 | % | 306 | 49.9 | % | ||||||||||
| R&D expenses |
26 | 4.6 | % | 27 | 4.4 | % | ||||||||||
| S&M expenses |
122 | 21.9 | % | 134 | 21.9 | % | ||||||||||
| G&A expenses |
36 | 6.4 | % | 36 | 5.8 | % | ||||||||||
| Other |
§ | § | § | § | ||||||||||||
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| Segment profit* |
$ | 95 | 17.0 | % | $ | 109 | 17.8 | % | ||||||||
| * | Segment profit does not include amortization and certain other items. |
| § | Represents an amount less than $0.5 million or 0.5%, as applicable. |
International Markets Revenues
Our International Markets segment includes all countries in which we operate other than the United States and the countries included in our Europe segment. The International Markets segment covers a substantial portion of the global pharmaceutical industry, including more than 35 countries.
The countries in our International Markets segment include highly regulated, mainly generic markets, such as Canada and Israel, and branded generics-oriented markets, such as Russia and certain Latin America markets.
On March 31, 2025, we divested our Teva-Takeda business venture in Japan, which included generic products and legacy products. Since the establishment of the business venture and until the completion of its sale, Teva held 51% of the outstanding common stock of the business venture. On March 31, 2025, we deconsolidated the business venture from our financial statements. For additional information, see note 2 and note 17 to our consolidated financial statements.
As of the date of this Quarterly Report on Form 10-Q, sustained conflict between Russia and Ukraine and disruption in the region is ongoing. Russia and Ukraine markets are included in our International Markets segment results, and we have no manufacturing or R&D facilities in these markets. During the three months ended September 30, 2025, the impact of this conflict on our International Markets segment’s results of operations and financial condition was immaterial. Consistent with our foreign exchange risk management hedging programs, in the three months ended September 30, 2025, we partially hedged our exposure to currency exchange rate fluctuations with respect to our balance sheet assets, revenues and expenses. As of the end of the third quarter of 2025, we also hedge a small part of our projected net revenues in Russian rubles for 2025. Prior to and since the escalation of the conflict, we have been taking measures to reduce our operational cash balances in Russia and Ukraine. We have been monitoring the solvency of our customers in Russia and Ukraine and have taken measures, where practicable, to mitigate our exposure to risks related to the conflict in the region. However, the duration, severity and global implications (including potential inflation and devaluation consequences) of the conflict cannot be predicted at this time and could have an effect on our business, including on our exchange rate exposure, supply chain, operational costs and commercial presence in these markets.
Revenues from our International Markets segment in the third quarter of 2025 were $557 million, a decrease of 9% compared to the third quarter of 2024. In local currency terms, revenues decreased by 10% compared to the third quarter of 2024. This decrease was mainly due to the divestment of our business venture in Japan, partially offset by higher revenues, mainly from generic products in other markets.
In the third quarter of 2025, revenues were positively impacted by exchange rate fluctuations of $9 million, including hedging effects, compared to the third quarter of 2024. Revenues in the third quarter of 2025 included $2 million from a positive hedging impact, compared to a positive hedging impact of $1 million in the third quarter of 2024, which are included in “Other” in the table below. See note 8d to our consolidated financial statements.
Revenues by Major Products and Activities
The following table presents revenues for our International Markets segment by major products and activities for the three months ended September 30, 2025 and 2024:
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| Three months ended September 30, |
Percentage Change 2025-2024 |
|||||||||||
| 2025 | 2024 | |||||||||||
| (U.S. $ in millions) | ||||||||||||
| Generic products (including OTC and biosimilars) |
$ | 421 | $ | 477 | (12 | %) | ||||||
| AJOVY |
30 | 24 | 23 | % | ||||||||
| AUSTEDO |
17 | 13 | 32 | % | ||||||||
| COPAXONE |
8 | 13 | (40 | %) | ||||||||
| Other* |
82 | 86 | (4 | %) | ||||||||
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| Total |
$ | 557 | $ | 613 | (9 | %) | ||||||
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| * | Other revenues in the third quarter of 2025 and 2024 include the sale of certain product rights. |
Generic products revenues (including OTC and biosimilar products) in our International Markets segment were $421 million in the third quarter of 2025, a decrease of 12% in U.S. dollars. In local currency terms revenues decreased by 13%, compared to the third quarter of 2024, mainly due to the divestment of our business venture in Japan, partially offset by higher revenues in other markets.
AJOVY was launched in certain markets in our International Markets segment, including in Canada, Japan, Australia, Israel, South Korea, Brazil and others. AJOVY revenues in our International Markets segment in the third quarter of 2025 were $30 million, compared to $24 million in the third quarter of 2024. In local currency terms, revenues increased by 21%, mainly due to growth in existing markets in which AJOVY was launched.
AUSTEDO was launched in China and Israel in 2021 and in Brazil in 2022, for the treatment of chorea associated with Huntington’s disease and for the treatment of tardive dyskinesia. In February 2024, we announced a strategic partnership for the marketing and distribution of AUSTEDO in China with Jiangsu Nhwa Hexin Pharmaceutical Marketing Co., Ltd. In April 2025, AUSTEDO received marketing authorization in South Korea. We continue to evaluate additional submissions in various other markets.
AUSTEDO revenues in our International Markets segment in the third quarter of 2025 were $17 million compared to $13 million in the third quarter of 2024. In local currency terms, revenues increased by 31%.
COPAXONE revenues in our International Markets segment in the third quarter of 2025 were $8 million compared to $13 million in the third quarter of 2024.
International Markets Gross Profit
Gross profit from our International Markets segment in the third quarter of 2025 was $278 million, a decrease of 9% compared to $306 million in the third quarter of 2024.
Gross profit margin for our International Markets segment in the third quarter of 2025 decreased to 49.8%, compared to 49.9% in the third quarter of 2024.
International Markets R&D Expenses
R&D expenses relating to our International Markets segment in the third quarter of 2025 were $26 million, a decrease of 4% compared to the third quarter of 2024.
For a description of our R&D expenses in the third quarter of 2025, see “—Teva Consolidated Results—Research and Development (R&D) Expenses, net” below.
International Markets S&M Expenses
S&M expenses relating to our International Markets segment in the third quarter of 2025 were $122 million, a decrease of 9% compared to the third quarter of 2024, mainly due to the divestment of our business venture in Japan.
International Markets G&A Expenses
G&A expenses relating to our International Markets segment in the third quarter of 2025 were $36 million, flat compared to the third quarter of 2024.
International Markets Profit
Profit from our International Markets segment consists of revenues less cost of sales, R&D expenses, S&M expenses, G&A expenses and other expenses (income) related to this segment. Segment profit does not include amortization and certain other items.
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Profit from our International Markets segment in the third quarter of 2025 was $95 million, a decrease of 13%, compared to $109 million in the third quarter of 2024. This decrease was mainly due to the divestment of our business venture in Japan.
Other Activities
We have other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our United States, Europe or International Markets segments described above.
On January 31, 2024, we announced that we intend to divest our API business (including its R&D, manufacturing and commercial activities) through a sale. The intention to divest is in alignment with our Pivot to Growth strategy. As of the date of this Quarterly Report on Form 10-Q, exclusive discussions with a selected buyer on the sale have terminated. Teva is initiating a renewed sales process, maintaining its strategic intention to divest its API business. However, there can be no assurance regarding the ultimate timing or structure of a potential divestiture or that a divestiture will be agreed or completed at all. For further information, see note 2 to our consolidated financial statements.
Our revenues from other activities in the third quarter of 2025 were $205 million, a decrease of 10% in U.S. dollars, or 13% in local currency terms, compared to the third quarter of 2024, mainly due to a decrease in revenues from contract manufacturing services in the third quarter of 2025.
API sales to third parties in the third quarter of 2025 were $125 million, a decrease of 4% in both U.S. dollars and local currency terms, compared to the third quarter of 2024.
Teva Consolidated Results
Revenues
Revenues in the third quarter of 2025 were $4,480 million, an increase of 3% in U.S. dollars, or 1% in local currency terms compared to the third quarter of 2024. This increase was mainly due to higher revenues from AUSTEDO and from generic products including biosimilars in our U.S. segment, partially offset by lower revenues from generic products in our International Markets segment due to the divestment of our business venture in Japan, from generic products in our Europe segment and from certain other innovative products across all our segments, as well as lower year-over-year proceeds from the sale of certain product rights.
See “—United States Revenues,” “—Europe Revenues,” “—International Markets Revenues” and “—Other Activities” above.
Exchange rate movements during the third quarter of 2025, including hedging effects, positively impacted revenues by $106 million, compared to the third quarter of 2024. See note 8d to our consolidated financial statements.
Gross Profit
Gross profit in the third quarter of 2025 was $2,304 million, an increase of 7% compared to $2,148 million in the third quarter of 2024.
Gross profit margin was 51.4% in the third quarter of 2025, compared to 49.6% in the third quarter of 2024. This increase was mainly due to higher revenues from AUSTEDO.
Research and Development (R&D) Expenses, net
Our R&D activities for innovative medicines and biosimilar products in each of our segments include costs of discovery research, preclinical work, drug formulation, early- and late-stage clinical development and product registration costs. These expenditures are reported net of contributions received from collaboration partners. Our spending takes place throughout the development process, including (i) early-stage projects in both discovery and preclinical phases; (ii) middle-stage projects in clinical programs up to Phase 3; (iii) late-stage projects in Phase 3 programs, including where a new drug application is currently pending approval; (iv) post-approval studies for marketed products; and (v) indirect expenses, such as costs of infrastructure and personnel.
Our R&D activities for generic products in each of our segments include both (i) direct expenses relating to product formulation, analytical method development, stability testing, management of bioequivalence and other clinical studies and regulatory filings; and (ii) indirect expenses, such as costs of infrastructure and personnel.
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In the third quarter of 2025, our R&D expenses, net primarily related to innovative product candidates and marketed products in immunology, neuroscience and selected other areas, as well as generic products and biosimilars.
R&D expenses, net in the third quarter of 2025, were $256 million, an increase of 7% compared to $240 million in the third quarter of 2024.
Our higher R&D expenses, net in the third quarter of 2025 compared to the third quarter of 2024, were mainly due to an increase in immunology projects, partially offset by a decrease in our late-stage innovative pipeline in neuroscience (mainly neuropsychiatry), which was also impacted by a reimbursement from our strategic partnerships in the third quarter of 2024.
Our R&D expenses, net in the third quarter of 2025, were also impacted by reimbursements from the strategic partnerships we entered into in 2023 and 2024. See note 2 to our consolidated financial statements.
R&D expenses, net as a percentage of revenues were 5.7% in the third quarter of 2025, compared to 5.5% in the third quarter of 2024.
Innovative Medicines Pipeline
Below is a description of key products in our innovative medicines pipeline as of November 5, 2025:
| Phase 2 |
Phase 3 | |||
| Neuroscience | olanzapine LAI (TEV-‘749) Schizophrenia (September 2022)
| |||
| Immunology | Anti-IL-15 (TEV-’408) Celiac disease |
Dual Action Rescue Inhaler (DARI) (ICS/SABA; TEV-’248) (1) Asthma (February 2023)
| ||
| emrusolmin(2) (TEV-‘286) Multiple System Atrophy |
duvakitug (anti-TL1A) (3) (TEV-’574) Inflammatory Bowel Disease (October 2025) |
| (1) | In collaboration with Launch Therapeutics. |
| (2) | In collaboration with Modag. |
| (3) | In collaboration with Sanofi. |
Biosimilar Products Pipeline
We have additional biosimilar products in development internally and with our partners that are in various stages of clinical trials and regulatory review worldwide, including confirmatory clinical trials for biosimilars to Xolair® (omalizumab); to Entyvio® (vedolizymab) and Entyvio® SC (vedolizymab), which are in collaboration with Alvotech for the U.S. market; and TEV-‘333 and TEV-‘316, both in collaboration with mAbxience. Our proposed biosimilars to Prolia® (denosumab) and to Xgeva® (denosumab), were submitted for regulatory review in the U.S. and Europe. Our proposed biosimilars to Simponi®, Simponi Aria® (golimumab), and Eylea® (aflibercept), which are in collaboration with Alvotech, were submitted for regulatory review in the U.S.
Selling and Marketing (S&M) Expenses
S&M expenses in the third quarter of 2025 were $656 million, an increase of 5% compared to the third quarter of 2024. This increase was mainly a result of the factors discussed above under “—United States segment—S&M Expenses,” “—Europe segment— S&M Expenses” and “—International Markets segment— S&M Expenses.”
S&M expenses as a percentage of revenues were 14.7% in the third quarter of 2025, compared to 14.5% in the third quarter of 2024.
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General and Administrative (G&A) Expenses
G&A expenses in the third quarter of 2025 were $317 million, an increase of 6% compared to the third quarter of 2024. This increase was mainly due to costs related to optimization activities of Teva’s global organization and operations in connection with Teva’s Transformation programs, as well as a negative impact from exchange rate fluctuations.
G&A expenses as a percentage of revenues were 7.1% in the third quarter of 2025 compared to 6.9% in the third quarter of 2024.
Intangible Asset Impairments
We recorded expenses of $64 million for identifiable intangible asset impairments in the third quarter of 2025, compared to expenses of $28 million in the third quarter of 2024. See note 5 to our consolidated financial statements.
Goodwill Impairment
No goodwill impairment charges were recorded in the third quarter of 2025, compared to a goodwill impairment charge of $600 million in the third quarter of 2024 related to Teva’s API reporting unit. See note 6 to our consolidated financial statements.
Other Asset Impairments, Restructuring and Other Items
We recorded expenses of $62 million for other asset impairments, restructuring and other items in the third quarter of 2025, compared to an income of $23 million in the third quarter of 2024. See note 12 to our consolidated financial statements.
Legal Settlements and Loss Contingencies
We recorded expenses of $60 million in legal settlements and loss contingencies in the third quarter of 2025, compared to expenses of $450 million in the third quarter of 2024. See note 9 to our consolidated financial statements.
Other Loss (Income)
Other loss in the third quarter of 2025 was $7 million, compared to other income of $21 million in the third quarter of 2024. Other income in the third quarter of 2024 included a capital gain from the sale of a business in our International Markets segment.
Operating Income (Loss)
Operating income was $882 million in the third quarter of 2025, compared to an operating loss of $51 million in the third quarter of 2024. This increase was mainly due to the goodwill impairment charge and higher legal settlements and loss contingencies recorded in the third quarter of 2024.
Operating income as a percentage of revenues was 19.7% in the third quarter of 2025, compared to an operating loss as a percentage of revenues of 1.2% in the third quarter of 2024.
Financial Expenses, Net
In the third quarter of 2025, financial expenses, net were $237 million, mainly comprised of net interest expenses of $209 million. In the third quarter of 2024, financial expenses, net were $272 million, mainly comprised of net interest expenses of $225 million and a negative exchange rate impact, driven mainly from currencies which we were unable to hedge.
Reconciliation Table to Consolidated Income (Loss) Before Income Taxes
The following table presents a reconciliation of our segment profits to our consolidated operating income (loss) and to consolidated income (loss) before income taxes for the three months ended September 30, 2025 and 2024:
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| Three months ended September 30, |
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| 2025 | 2024 | |||||||
| (U.S. $ in millions) | ||||||||
| United States profit |
$ | 937 | $ | 748 | ||||
| Europe profit |
303 | 373 | ||||||
| International Markets profit |
95 | 109 | ||||||
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| Total reportable segments profit |
1,334 | 1,230 | ||||||
| Profit of other activities |
(40 | ) | (16 | ) | ||||
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| Total segments profit |
1,294 | 1,214 | ||||||
| Amounts not allocated to segments: |
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| Amortization |
144 | 146 | ||||||
| Other assets impairments, restructuring and other items |
62 | (23 | ) | |||||
| Goodwill impairment |
— | 600 | ||||||
| Intangible assets impairments |
64 | 28 | ||||||
| Legal settlements and loss contingencies |
60 | 450 | ||||||
| Other unallocated amounts |
82 | 64 | ||||||
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| Consolidated operating income (loss) |
882 | (51 | ) | |||||
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| Financial expenses, net |
237 | 272 | ||||||
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| Consolidated income (loss) before income taxes |
$ | 646 | $ | (324 | ) | |||
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Income Taxes
In the third quarter of 2025, we recognized a tax expense of $214 million, on a pre-tax income of $646 million. In the third quarter of 2024, we recognized a tax expense of $69 million, on a pre-tax loss of $324 million. See note 11 to our consolidated financial statements.
Net Income (Loss) Attributable to Teva
Net income attributable to Teva was $433 million in the third quarter of 2025, compared to a net loss of $437 million in the third quarter of 2024. This change was mainly due to higher operating income in the third quarter of 2025, partially offset by higher income taxes, as discussed above.
Diluted Shares Outstanding and Earnings (Loss) per Share
The weighted average diluted shares outstanding used for the fully diluted share calculations for the three months ended September 30, 2025 and 2024 was 1,164 million shares and 1,133 million shares, respectively.
Diluted earnings per share was $0.37 in the third quarter of 2025, compared to diluted loss per share of $0.39 in the third quarter of 2024. See note 13 to our consolidated financial statements.
Share Count for Market Capitalization
We calculate share amounts using the outstanding number of shares (i.e., excluding treasury shares) plus shares that would be outstanding upon the exercise of options and vesting of RSUs and PSUs, and the conversion of our convertible senior debentures, in each case, at period end.
As of September 30, 2025 and 2024, the fully diluted share count for purposes of calculating our market capitalization was approximately 1,184 million shares and 1,167 million shares, respectively.
Impact of Currency Fluctuations on Results of Operations
In the third quarter of 2025, approximately 41% of our revenues were denominated in currencies other than the U.S. dollar. Since our results are reported in U.S. dollars, we are subject to significant foreign currency risks. Accordingly, changes in the rate of exchange between the U.S. dollar and local currencies in the markets in which we operate (primarily the euro, Russian ruble, British pound, Swiss franc, Canadian dollar, new Israeli shekel and Polish złoty) impacted our results.
During the third quarter of 2025, the following main currencies relevant to our operations increased in value against the U.S. dollar (each compared on a quarterly average basis): Russian ruble by 11%, new Israeli shekel by 10%, Swedish krona by 10%, Swiss franc by 8%, Polish złoty by 7%, euro by 6%, Bulgarian lev by 6%, Hungary forint by 6% and British pound by 4%. The following currencies relevant to our operations decreased in value against the U.S. dollar (each compared on a quarterly average basis): Argentinian peso by 30% and Turkish lira by 18%.
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As a result, exchange rate movements during the third quarter of 2025, including hedging effects, positively impacted revenues by $106 million and operating income by $21 million, compared to the third quarter of 2024.
Hedging transactions of future projected revenues and expenses are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. See note 8d to our consolidated financial statements.
Commencing in the third quarter of 2018, the cumulative inflation in Argentina exceeded 100% or more over a three-year period. Although this triggered highly inflationary accounting treatment, it did not have a material impact on our results of operations.
Commencing in the second quarter of 2022, the cumulative inflation in Turkey exceeded 100% or more over a three-year period. Although this triggered highly inflationary accounting treatment, it did not have a material impact on our results of operations.
Comparison of Nine Months Ended September 30, 2025 to Nine Months Ended September 30, 2024
Unless specified otherwise, the factors used to explain quarterly changes on a year-over-year basis are also relevant for the comparison of the results for the nine months ended September 30, 2025 and 2024. Where there are different factors affecting the nine-month comparison, we have described them below.
Segment Information
United States Segment
The following table presents revenues, expenses and profit for our United States segment for the nine months ended September 30, 2025 and 2024:
| Nine months ended September 30, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| (U.S. $ in millions / % of Segment Revenues) |
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| Revenues |
$ | 6,543 | 100 | % | $ | 6,060 | 100 | % | ||||||||
| Cost of sales |
2,748 | 42.0 | % | 2,769 | 45.7 | % | ||||||||||
| Gross profit |
3,795 | 58.0 | % | 3,291 | 54.3 | % | ||||||||||
| R&D expenses |
467 | 7.1 | % | 475 | 7.8 | % | ||||||||||
| S&M expenses |
831 | 12.7 | % | 789 | 13.0 | % | ||||||||||
| G&A expenses |
323 | 4.9 | % | 300 | 5.0 | % | ||||||||||
| Other loss (income) |
(1 | ) | § | (1 | ) | § | ||||||||||
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| Segment profit* |
$ | 2,175 | 33.2 | % | $ | 1,727 | 28.5 | % | ||||||||
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| * | Segment profit does not include amortization and certain other items. |
| § | Represents an amount less than 0.5%. |
United States Revenues
Revenues from our United States segment in the first nine months of 2025 were $6,543 million, an increase of 8% compared to $6,060 million in the first nine months of 2024.
Revenues by Major Products and Activities
The following table presents revenues for our United States segment by major products and activities for the nine months ended September 30, 2025 and 2024:
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| Nine months ended September 30, |
Percentage Change 2025-2024 |
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| 2025 | 2024 | |||||||||||
| (U.S. $ in millions) | ||||||||||||
| Generic products (including biosimilars) |
$ | 2,984 | $ | 2,924 | 2 | % | ||||||
| AJOVY |
190 | 144 | 31 | % | ||||||||
| AUSTEDO |
1,492 | 1,124 | 33 | % | ||||||||
| BENDEKA and TREANDA |
111 | 127 | (13 | %) | ||||||||
| COPAXONE |
179 | 179 | § | |||||||||
| UZEDY |
136 | 75 | 82 | % | ||||||||
| Anda |
1,130 | 1,134 | § | |||||||||
| Other |
321 | 352 | (9 | %) | ||||||||
|
|
|
|
|
|||||||||
| Total |
$ | 6,543 | $ | 6,060 | 8 | % | ||||||
|
|
|
|
|
|||||||||
| § | Represents an amount less than 0.5%. |
United States Gross Profit
Gross profit from our United States segment in the first nine months of 2025 was $3,795 million, an increase of 15%, compared to $3,291 million in the first nine months of 2024.
Gross profit margin for our United States segment in the first nine months of 2025 increased to 58.0% compared to 54.3% in the first nine months of 2024.
United States R&D Expenses
R&D expenses relating to our United States segment in the first nine months of 2025 were $467 million, a decrease of 2%, compared to $475 million in the first nine months of 2024.
For a description of our R&D expenses in the first nine months of 2025, see “—Teva Consolidated Results—Research and Development (R&D) Expenses, net” below.
United States S&M Expenses
S&M expenses relating to our United States segment in the first nine months of 2025 were $831 million, an increase of 5%, compared to $789 million in the first nine months of 2024.
United States G&A Expenses
G&A expenses relating to our United States segment in the first nine months of 2025 were $323 million, an increase of 7%, compared to $300 million in the first nine months of 2024.
United States Profit
Profit from our United States segment in the first nine months of 2025 was $2,175 million, an increase of 26%, compared to $1,727 million in the first nine months of 2024.
Europe Segment
The following table presents revenues, expenses and profit for our Europe segment for the nine months ended September 30, 2025 and 2024:
| Nine months ended September 30, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| (U.S. $ in millions / % of Segment Revenues) |
||||||||||||||||
| Revenues |
$ | 3,726 | 100.0 | % | $ | 3,749 | 100.0 | % | ||||||||
| Cost of sales |
1,687 | 45.3 | % | 1,637 | 43.7 | % | ||||||||||
| Gross profit |
2,039 | 54.7 | % | 2,113 | 56.3 | % | ||||||||||
| R&D expenses |
181 | 4.9 | % | 173 | 4.6 | % | ||||||||||
| S&M expenses |
652 | 17.5 | % | 605 | 16.1 | % | ||||||||||
| G&A expenses |
210 | 5.6 | % | 197 | 5.2 | % | ||||||||||
| Other loss (income) |
§ | § | 1 | § | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment profit* |
$ | 996 | 26.7 | % | $ | 1,137 | 30.3 | % | ||||||||
| * | Segment profit does not include amortization and certain other items. |
| § | Represents an amount less than $0.5 million or 0.5%, as applicable. |
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Europe Revenues
Our Europe segment includes the European Union, the United Kingdom, and certain other European countries.
Revenues from our Europe segment in the first nine months of 2025 were $3,726 million, a decrease of $23 million, compared to the first nine months of 2024. In local currency terms, revenues decreased by 3% compared to the first nine months of 2024.
Revenues by Major Products and Activities
The following table presents revenues for our Europe segment by major products and activities for the nine months ended September 30, 2025 and 2024:
| Nine months ended September 30, |
Percentage Change |
|||||||||||
| 2025 | 2024 | 2025-2024 | ||||||||||
| (U.S. $ in millions) | ||||||||||||
| Generic products (including OTC and biosimilars) |
$ | 3,011 | $ | 2,947 | 2 | % | ||||||
| AJOVY |
195 | 158 | 23 | % | ||||||||
| COPAXONE |
135 | 163 | (17 | %) | ||||||||
| Respiratory products |
162 | 183 | (12 | %) | ||||||||
| Other* |
223 | 299 | (25 | %) | ||||||||
|
|
|
|
|
|||||||||
| Total |
$ | 3,726 | $ | 3,749 | (1 | %) | ||||||
|
|
|
|
|
|||||||||
| * | Other revenues in the first nine months of 2025 and 2024 include the sale of certain product rights. |
Europe Gross Profit
Gross profit from our Europe segment in the first nine months of 2025 was $2,039 million, a decrease of 3% compared to $2,113 million in the first nine months of 2024.
Gross profit margin for our Europe segment in the first nine months of 2025 decreased to 54.7% compared to 56.3% in the first nine months of 2024.
Europe R&D Expenses
R&D expenses relating to our Europe segment in the first nine months of 2025 were $181 million, an increase of 5% compared to $173 million in the first nine months of 2024.
Europe S&M Expenses
S&M expenses relating to our Europe segment in the first nine months of 2025 were $652 million, an increase of 8% compared to $605 million in the first nine months of 2024.
Europe G&A Expenses
G&A expenses relating to our Europe segment in the first nine months of 2025 were $210 million, an increase of 7% compared to $197 million in the first nine months of 2024.
Europe Profit
Profit from our Europe segment in the first nine months of 2025 was $996 million, a decrease of 12% compared to $1,137 million in the first nine months of 2024.
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International Markets Segment
The following table presents revenues, expenses and profit for our International Markets segment for the nine months ended September 30, 2025 and 2024:
| Nine months ended September 30, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| (U.S. $ in millions / % of Segment Revenues) |
||||||||||||||||
| Revenues |
$ | 1,634 | 100 | % | $ | 1,802 | 100 | % | ||||||||
| Cost of sales |
835 | 51.1 | % | 914 | 50.7 | % | ||||||||||
| Gross profit |
799 | 48.9 | % | 889 | 49.3 | % | ||||||||||
| R&D expenses |
75 | 4.6 | % | 85 | 4.7 | % | ||||||||||
| S&M expenses |
353 | 21.6 | % | 397 | 22.0 | % | ||||||||||
| G&A expenses |
107 | 6.6 | % | 109 | 6.0 | % | ||||||||||
| Other loss (income) |
(3 | ) | § | (1 | ) | § | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment profit* |
$ | 266 | 16.3 | % | $ | 299 | 16.6 | % | ||||||||
| * | Segment profit does not include amortization and certain other items. |
| § | Represents an amount less than 0.5%. |
International Markets Revenues
Our International Markets segment includes all countries in which we operate other than the United States and the countries included in our Europe segment.
Revenues from our International Markets segment in the first nine months of 2025 were $1,634 million, a decrease of $168 million, or 9%, compared to the first nine months of 2024. In local currency terms, revenues decreased by 7% compared to the first nine months of 2024.
In the first nine months of 2025, revenues were negatively impacted by exchange rate fluctuations of $38 million including hedging effects, compared to the first nine months of 2024. Revenues in the first nine months of 2025 included a negative hedging impact of $20 million compared to a negligible hedging impact in the first nine months of 2024, which are included in “Other” in the table below. See note 8d to our consolidated financial statements.
Revenues by Major Products and Activities
The following table presents revenues for our International Markets segment by major products and activities for the nine months ended September 30, 2025 and 2024:
| Nine months ended September 30, |
Percentage Change |
|||||||||||
| 2025 | 2024 | 2025-2024 | ||||||||||
| (U.S. $ in millions) | ||||||||||||
| Generic products (including OTC and biosimilars) |
$ | 1,298 | $ | 1,440 | (10 | %) | ||||||
| AJOVY |
78 | 63 | 24 | % | ||||||||
| AUSTEDO |
34 | 39 | (12 | %) | ||||||||
| COPAXONE |
25 | 38 | (35 | %) | ||||||||
| Other* |
199 | 222 | (11 | %) | ||||||||
|
|
|
|
|
|||||||||
| Total |
$ | 1,634 | $ | 1,802 | (9 | %) | ||||||
|
|
|
|
|
|||||||||
| * | Other revenues in the first nine months of 2025 and 2024 include the sale of certain product rights. |
AUSTEDO revenues in our International Markets segment in the first nine months of 2025 were $34 million, compared to $39 million in the first nine months of 2024. This decrease was mainly due to timing of shipments.
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International Markets Gross Profit
Gross profit from our International Markets segment in the first nine months of 2025 was $799 million, compared to $889 million in the first nine months of 2024.
Gross profit margin for our International Markets segment in the first nine months of 2025 was 48.9%, compared to 49.3% in the first nine months of 2024. This decrease was mainly due to a negative hedging impact, partially offset by a favorable mix of products.
International Markets R&D Expenses
R&D expenses relating to our International Markets segment in the first nine months of 2025 were $75 million, a decrease of 11% compared to $85 million in the first nine months of 2024.
For a description of our R&D expenses in the first nine months of 2025, see “—Teva Consolidated Results—Research and Development (R&D) Expenses, net” below.
International Markets S&M Expenses
S&M expenses relating to our International Markets segment in the first nine months of 2025 were $353 million, a decrease of 11% compared to $397 million in the first nine months of 2024.
International Markets G&A Expenses
G&A expenses relating to our International Markets segment in the first nine months of 2025 were $107 million, a decrease of 1% compared to $109 million in the first nine months of 2024.
International Markets Profit
Profit from our International Markets segment in the first nine months of 2025 was $266 million, a decrease of 11%, compared to $299 million in the first nine months of 2024.
Other Activities
We have other sources of revenues, primarily the sale of APIs to third parties, certain contract manufacturing services and an out-licensing platform offering a portfolio of products to other pharmaceutical companies through our affiliate Medis. Our other activities are not included in our United States, Europe or International Markets segments described above.
Our revenues from other activities in the first nine months of 2025 were $644 million, a decrease of 9% in U.S. dollars or 10% in local currency terms, compared to the first nine months of 2024.
API sales to third parties in the first nine months of 2025 were $389 million, a decrease of 5% in both U.S. dollars and local currency terms, compared to the first nine months of 2024.
Teva Consolidated Results
Revenues
Revenues in the first nine months of 2025 were $12,547 million, an increase of 2% compared to the first nine months of 2024. In local currency terms, revenues increased by 1%, compared to the first nine months of 2024.
See “—United States Revenues,” “—Europe Revenues,” “—International Markets Revenues” and “—Other Activities” above.
Exchange rate movements during the first nine months of 2025, net of hedging effects, positively impacted revenues by $53 million, compared to the first nine months of 2024. See note 8d to our consolidated financial statements.
Gross Profit
Gross profit in the first nine months of 2025 was $6,282 million, an increase of 6% compared to the first nine months of 2024.
Gross profit margin was 50.1% in the first nine months of 2025, compared to 48.3% in the first nine months of 2024.
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Research and Development (R&D) Expenses, net
R&D expenses, net in the first nine months of 2025 were $746 million, a decrease of 1% compared to the first nine months of 2024.
Our lower R&D expenses, net in the first nine months of 2025 compared to the first nine months of 2024, were mainly due to a decrease in non-recurring milestone payments related to certain biosimilar projects, partially offset by an increase in our immunology projects, as well as in our late-stage innovative pipeline in neuroscience (mainly neuropsychiatry).
R&D expenses, net as a percentage of revenues were 5.9% in the first nine months of 2025, compared to 6.1% in the first nine months of 2024.
Selling and Marketing (S&M) Expenses
S&M expenses in the first nine months of 2025 were $1,933 million, an increase of 2% compared to the first nine months of 2024.
S&M expenses as a percentage of revenues were 15.4% in the first nine months of 2025 and 2024.
General and Administrative (G&A) Expenses
G&A expenses in the first nine months of 2025 were $920 million, an increase of 7% compared to the first nine months of 2024.
G&A expenses as a percentage of revenues were 7.3% in the first nine months of 2025, compared to 7.0% in the first nine months of 2024.
Intangible Asset Impairments
We recorded expenses of $227 million for identifiable intangible asset impairments in the first nine months of 2025, compared to expenses of $169 million in the first nine months of 2024. See note 5 to our consolidated financial statements.
Goodwill Impairment
No goodwill impairment charges were recorded in the first nine months of 2025, compared to a goodwill impairment charge of $1,000 million related to Teva’s API reporting unit recorded in the first nine months of 2024. See note 6 to our consolidated financial statements.
Other Asset Impairments, Restructuring and Other Items
We recorded expenses of $272 million for other asset impairments, restructuring and other items in the first nine months of 2025, compared to expenses of $931 million in the first nine months of 2024. See note 12 to our consolidated financial statements.
Legal Settlements and Loss Contingencies
We recorded expenses of $312 million in legal settlements and loss contingencies in the first nine months of 2025, compared to expenses of $638 million in the first nine months of 2024. See note 9 to our consolidated financial statements.
Other Loss (Income)
Other loss in the first nine months of 2025 was $15 million, compared to other income of $22 million in the first nine months of 2024.
Operating Income (Loss)
Operating income was $1,857 million in the first nine months of 2025, compared to an operating loss of $274 million in the first nine months of 2024.
Operating income as a percentage of revenues was 14.8% in the first nine months of 2025, compared to an operating loss as a percentage of revenues of 2.2% in the first nine months of 2024.
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Financial Expenses, Net
In the first nine months of 2025, financial expenses, net were $714 million, mainly comprised of net interest expenses of $624 million, and a negative exchange rate impact, driven mainly from currencies which we were unable to hedge. In the first nine months of 2024, financial expenses, net were $763 million, mainly comprised of net interest expenses of $691 million and a negative exchange rate impact driven mainly from currencies which we were unable to hedge.
Reconciliation Table to Consolidated Income (Loss) Before Income Taxes
The following table presents a reconciliation of our segment profits to our consolidated operating income (loss) and to consolidated income (loss) before income taxes for the nine months ended September 30, 2025 and 2024:
| Nine months ended September 30, |
||||||||
| 2025 | 2024 | |||||||
| (U.S. $ in millions) | ||||||||
| United States profit |
$ | 2,175 | $ | 1,727 | ||||
| Europe profit |
996 | 1,137 | ||||||
| International Markets profit |
266 | 299 | ||||||
|
|
|
|
|
|||||
| Total reportable segments profit |
3,437 | 3,163 | ||||||
| Profit (loss) of other activities |
(64 | ) | (1 | ) | ||||
|
|
|
|
|
|||||
| Total segments profit |
3,373 | 3,162 | ||||||
| Amounts not allocated to segments: |
||||||||
| Amortization |
436 | 444 | ||||||
| Other assets impairments, restructuring and other items |
272 | 931 | ||||||
| Goodwill impairment |
— | 1,000 | ||||||
| Intangible assets impairments |
227 | 169 | ||||||
| Legal settlements and loss contingencies |
309 | 638 | ||||||
| Other unallocated amounts |
272 | 254 | ||||||
|
|
|
|
|
|||||
| Consolidated operating income (loss) |
1,857 | (274 | ) | |||||
|
|
|
|
|
|||||
| Financial expenses, net |
714 | 763 | ||||||
|
|
|
|
|
|||||
| Consolidated income (loss) before income taxes |
$ | 1,143 | $ | (1,037 | ) | |||
|
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|
|
|
|||||
Income Taxes
In the first nine months of 2025, we recognized a tax expense of $210 million, on pre-tax income of $1,143 million. In the first nine months of 2024, we recognized a tax expense of $648 million, on pre-tax loss of $1,037 million. See note 11 to our consolidated financial statements.
Net Income (Loss) Attributable to non-controlling interests
Net income attributable to redeemable and non-redeemable non-controlling interests was $7 million in the first nine months of 2025, compared to a net loss attributable to redeemable and non-redeemable non-controlling interests of $262 million in the first nine months of 2024. The net loss in the first nine months of 2024 was mainly due to higher impairments of tangible assets, largely related to the classification of our business venture in Japan as held for sale. See note 12 to our consolidated financial statements.
Net Income (Loss) Attributable to Teva
Net income attributable to Teva was $930 million in the first nine months of 2025, compared to a net loss of $1,422 million in the first nine months of 2024.
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Diluted Shares Outstanding and Earnings (Loss) per Share
The weighted average diluted shares outstanding used for the fully diluted share calculations for the nine months ended September 30, 2025 and 2024 was 1,160 million shares and 1,130 million shares, respectively.
Diluted earnings per share was $0.81 for the nine months ended September 30, 2025, compared to diluted loss per share of $1.26 for the nine months ended September 30, 2024. See note 13 to our consolidated financial statements.
Impact of Currency Fluctuations on Results of Operations
In the first nine months of 2025, approximately 45% of our revenues were denominated in currencies other than the U.S. dollar. Because our results are reported in U.S. dollars, we are subject to significant foreign currency risks. Accordingly, changes in the exchange rate between the U.S. dollar and local currencies in the markets in which we operate (primarily the euro, British pound, Russian ruble, Swiss franc, Canadian dollar, new Israeli shekel, Polish złoty, Swedish krona, Chilean peso, and Japanese yen) impacted our results.
During the first nine months of 2025, the following main currencies relevant to our operations increased in value against the U.S. dollar (all compared on a nine-month average basis): Russian ruble by 6%, Swedish krona by 5%, new Israeli shekel by 5%, Swiss franc by 5%, Polish złoty by 4%, British pound by 3%, Bulgarian lev by 3% and euro by 3%. The following main currencies relevant to our operations decreased in value against the U.S. dollar (all compared on a nine-month average basis): Argentinian peso by 25%, Turkish lira by 16%, Mexican peso by 9%, Brazilian real by 7%, Ukraine hryvna by 4%, Indian rupee by 4%, Australian dollar by 3% and Canadian dollar by 3%.
As a result, exchange rate movements during the first nine months of 2025, net of hedging effects, positively impacted overall revenues by $53 million and negatively impacted our operating income by $29 million, in comparison to the first nine months of 2024.
In the first nine months of 2025, a negative hedging impact of $51 million was recognized under revenues, and a positive hedging impact of $1 million was recognized under cost of sales. In the first nine months of 2024, a positive hedging impact of $1 million was recognized under revenues and a negative hedging impact of $5 was recognized under cost of sales.
Hedging transactions of future projected revenues and expenses are recognized on the balance sheet at their fair value on a quarterly basis, while the foreign exchange impact on the underlying revenues and expenses may occur in subsequent quarters. See note 8d to our consolidated financial statements.
2025 Aggregated Contractual Obligations
There have not been any material changes in our assessment of material contractual obligations and commitments as set forth in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024.
Liquidity and Capital Resources
Total balance sheet assets were $39,856 million as of September 30, 2025, compared to $39,326 million as of December 31, 2024.
Our working capital balance, which includes accounts receivables net of SR&A, inventories, prepaid expenses and other current assets, accounts payables, employee-related obligations, accrued expenses and other current liabilities, was negative $2,419 million as of September 30, 2025, compared to negative $2,837 million as of December 31, 2024. This increase was mainly due to higher inventory levels primarily due to exchange rate fluctuations, and an increase in accounts receivables, net of SR&A, as well as an increase in prepaid expenses and a decrease in employee related obligations mainly due to performance incentive payments to employees for 2024, partially offset by an increase in accounts payables and accrued expenses primarily due to exchange rate fluctuations.
Employee-related obligations, as of September 30, 2025 were $561 million, compared to $624 million as of December 31, 2024. The decrease in the first nine months of 2025 was mainly due to performance incentive payments to employees for 2024, partially offset by an accrual for performance incentive payments to employees for 2025.
Cash investment in property, plant and equipment and intangible assets in the third quarter of 2025 was $136 million, compared to $148 million in the third quarter of 2024. Depreciation in the third quarter of 2025 was $105 million, compared to $113 million in the third quarter of 2024.
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Cash and cash equivalents as of September 30, 2025, were $2,203 million, compared to $3,300 million as of December 31, 2024. See also the statement of cash flow to our consolidated financial statements.
In the first quarter of 2025, we paid a dividend of $340 million to redeemable non-controlling interests in our business venture in Japan.
Our cash on hand that is not used for ongoing operations is generally invested in bank deposits as well as liquid securities that bear fixed and floating rates.
Teva’s principal sources of short-term liquidity are its cash on hand, existing cash investments, liquid securities and available credit facilities, primarily our $1.8 billion unsecured syndicated sustainability-linked revolving credit facility, entered into in April 2022, as amended in February 2023 and in May 2024 (“RCF”). See note 7 to our consolidated financial statements.
Debt Balance and Movements
As of September 30, 2025, our debt was $16,790 million, compared to $17,783 million as of December 31, 2024. This decrease was mainly due to repayment at maturity of $1,812 million of our senior notes (as detailed below), partially offset by an increase of $791 million due to exchange rate fluctuations. Additionally, during the second quarter of 2025, we repurchased $2,290 million aggregate principal amount of notes upon consummation of a cash tender offer, and issued $2,298 million of senior notes, net of discount and issuance costs. For further information, see note 7 to our consolidated financial statements.
In January 2025, we repaid $426 million of our 6% senior notes at maturity.
In January 2025, we repaid $427 million of our 7.13% senior notes at maturity.
In March 2025, we repaid $515 million of our 4.50% senior notes at maturity.
In July 2025, we repaid $444 million of our 1% senior notes at maturity.
As of September 30, 2025, our debt was effectively denominated in the following currencies: 57% in U.S. dollars and 43% in euros.
The portion of total debt classified as short-term as of September 30, 2025 was negligible compared to 10% as of December 31, 2024.
Our financial leverage, which is the ratio between our debt and the sum of our debt and equity, was 70% as of September 30, 2025, compared to 77% as of December 31, 2024. Our average debt maturity was approximately 5.85 years as of September 30, 2025, compared to 5.5 years as of December 31, 2024.
Total Equity
Total equity was $7,254 million as of September 30, 2025, compared to $5,380 as of December 31, 2024. This increase was mainly due to a net income attributable to Teva of $930 million and a positive impact from exchange rate fluctuations of $645 million.
Exchange rate fluctuations affected our balance sheet, as approximately 78% of our net assets as of September 30, 2025 (including both monetary and non-monetary assets) were in currencies other than the U.S. dollar. When compared to December 31, 2024, changes in currency rates as of September 30, 2025 had a positive impact of $645 million on our equity. The following main currencies increased in value against the U.S. dollar: Russian ruble by 25%, Swiss franc by 12%, Polish złoty by 11%, Bulgarian lev by 11%, euro by 11%, Mexican peso by 11%, British pound by 6% and Japanese yen by 5%. All comparisons are on a year-to-date basis.
Cash Flow
We continually seek to improve the efficiency of our working capital management. Periodically, as part of our cash and commercial relationship management activities, we make decisions in our commercial, supply chain, and other activities which drive an acceleration of receivable payments from customers, or deceleration of payments to vendors, including timing of payments related to legal settlements, tax authorities and other matters. This has the effect of increasing or decreasing cash from operations, as well as working capital balance items during any given period. Increased cash from operations has the effect of reducing our leverage ratio, which is measured net of cash and cash equivalents, as of the end of such period. In connection with strategic continual improvement, we obtained more favorable payment terms from many of our vendors which are expected to continue in future periods. In addition, in periods in which receivable payments from customers are delayed, we have and expect we may in the future extend the time to pay certain vendors, so as to balance our liquidity position. Such decisions have had and may in the future have a material impact on our annual operating cash flow measurement, as well as on our quarterly results.
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Cash flow generated from operating activities during the third quarter of 2025 was $369 million, compared to $693 million in the third quarter of 2024. The lower cash flow generated from operating activities in the third quarter of 2025 was mainly due to timing of sales and collections, as well as higher legal settlement payments, partially offset by lower tax payments and higher profit.
During the third quarter of 2025, we generated free cash flow of $515 million, which we define as comprising $369 million in cash flow generated from operating activities, $274 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program) and $8 million of proceeds from divestitures of businesses and other assets, partially offset by $136 million in cash used for capital investment. During the third quarter of 2024, we generated free cash flow of $922 million, which we define as comprising $693 million in cash flow generated from operating activities, $339 million in beneficial interest collected in exchange for securitized accounts receivables (under our EU securitization program) and $38 million in divestitures of businesses and other assets, partially offset by $148 million in cash used for capital investment. The decrease in the third quarter of 2025 mainly resulted from lower cash flow generated from operating activities, as well as a decrease in proceeds from divestitures of businesses and other assets.
Dividends
We have not paid dividends on our ordinary shares or American Depositary Shares (ADSs) since December 2017.
Commitments
In addition to financing obligations under short-term debt and long-term senior notes and loans, debentures and convertible debentures, our major contractual obligations and commercial commitments include leases, royalty payments, contingent payments pursuant to acquisition agreements, collaboration agreements, development funding agreements and participation in joint ventures associated with R&D activities. For further information on our agreements with mAbxience, Launch Therapeutics and Abingworth, Biolojic Design, Royalty Pharma, Sanofi, Modag, Alvotech, Takeda and MedinCell, see note 2 to our consolidated financial statements.
We are committed to paying royalties, subject to the terms of applicable agreements, to the owners of know-how, partners in alliances and certain other arrangements, and to parties that financed R&D at a wide range of rates as a percentage of sales of certain products, as defined in the agreements. In some cases, the royalty period is not defined under the applicable agreement; in other cases, royalties will be paid over various periods not exceeding 20 years.
In connection with certain development, supply and marketing, and research and collaboration or services agreements, we are required to indemnify, in unspecified amounts, the parties to such agreements against third-party claims relating to (i) infringement or violation of intellectual property or other rights of such third party; or (ii) damages to users of the related products. Except as described in our financial statements, we are not aware of any material pending action that may result in the counterparties to these agreements claiming such indemnification.
Non-GAAP Net Income and Non-GAAP EPS Data
We present non-GAAP net income and non-GAAP earnings per share (“EPS”) as management believes that such data provide useful information to investors because they are used by management and our Board of Directors, in conjunction with other performance metrics, to evaluate our operational performance, to prepare and evaluate our work plans and annual budgets and ultimately to evaluate the performance of management, including annual compensation. While other qualitative factors and judgment also affect annual compensation, the principal quantitative element in the determination of such compensation are performance targets tied to the work plan, which are based on these non-GAAP measures.
Non-GAAP financial measures have no standardized meaning and accordingly have limitations in their usefulness to investors. Investors are cautioned that, unlike financial measures prepared in accordance with U.S. GAAP, non-GAAP measures may not be comparable with the calculation of similar measures for other companies. These non-GAAP financial measures are presented solely to permit investors to more fully understand how management assesses our performance. The limitations of using non-GAAP financial measures as performance measures are that they provide a view of our results of operations without including all events during a period and may not provide a comparable view of our performance to other companies in the pharmaceutical industry. Investors should consider non-GAAP net income and non-GAAP EPS in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.
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In preparing our non-GAAP net income and non-GAAP EPS data, we exclude items that either have a non-recurring impact on our financial performance or which, in the judgment of our management, are items that, either as a result of their nature or size, could, were they not excluded, potentially cause investors to extrapolate future performance from an improper base that is not reflective of our underlying business performance. Certain of these items are also excluded because of the difficulty in predicting their timing and scope. The items excluded from our non-GAAP net income and non-GAAP EPS include:
| • | amortization of purchased intangible assets; |
| • | certain legal settlements and material litigation fees and/or loss contingencies, due to the difficulty in predicting their timing and scope; |
| • | impairments of long-lived assets, including intangibles, property, plant and equipment and goodwill; |
| • | restructuring expenses, including severance, retention costs, contract cancellation costs and certain accelerated depreciation expenses primarily related to the rationalization of our plants or to certain other strategic activities, such as the realignment of R&D focus or other similar activities; |
| • | acquisition- or divestment- related items, including loss (gain) on sale of businesses, changes in contingent consideration, integration costs, banker and other professional fees and inventory step-up; |
| • | expenses related to our equity compensation; |
| • | significant one-time financing costs, amortization of issuance costs and terminated derivative instruments, and marketable securities investment valuation gains/losses; |
| • | unusual tax items; |
| • | other awards or settlement amounts, either paid or received; |
| • | other exceptional items that we believe are sufficiently large that their exclusion is important to facilitate an understanding of trends in our financial results, such as impacts due to significant costs for remediation of plants, or other unusual events; and |
| • | corresponding tax effects of the foregoing items. |
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The following tables present our non-GAAP net income and non-GAAP EPS for the three and nine months ended September 30, 2025 and 2024, as well as reconciliations of each measure to their nearest GAAP equivalents:
| Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||||||||||||
| ($ in millions except per share amounts) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income (Loss) attributable to Teva |
($ | ) | 433 | (437 | ) | ($ | ) | 930 | (1,422 | ) | ||||||||||||||
| Increase (decrease) for excluded items: |
||||||||||||||||||||||||
| Amortization of purchased intangible assets |
144 | 146 | 436 | 444 | ||||||||||||||||||||
| Legal settlements and loss contingencies(1) |
60 | 450 | 309 | 638 | ||||||||||||||||||||
| Goodwill impairment(2) |
— | 600 | — | 1,000 | ||||||||||||||||||||
| Impairment of long-lived assets(3) |
79 | (51 | ) | 255 | 758 | |||||||||||||||||||
| Restructuring costs(4) |
29 | 21 | 196 | 52 | ||||||||||||||||||||
| Equity compensation |
34 | 29 | 106 | 89 | ||||||||||||||||||||
| Contingent consideration(5) |
16 | 34 | 46 | 305 | ||||||||||||||||||||
| Loss (Gain) on sale of business |
— | (20 | ) | — | (21 | ) | ||||||||||||||||||
| Financial expenses |
7 | 11 | 58 | 35 | ||||||||||||||||||||
| Redeemable and non-redeemable non-controlling interests(6) |
— | 41 | 2 | (276 | ) | |||||||||||||||||||
| Other non-GAAP items(7) |
51 | 57 | 167 | 170 | ||||||||||||||||||||
| Corresponding tax effects and unusual tax items(8) |
58 | (83 | ) | (225 | ) | 270 | ||||||||||||||||||
| Non-GAAP net income attributable to Teva |
($ | ) | 910 | 798 | ($ | ) | 2,281 | 2,043 | ||||||||||||||||
| Non-GAAP tax rate(9) |
14.7 | % | 16.0 | % | 16.0 | % | 15.5 | % | ||||||||||||||||
| GAAP diluted earnings (loss) per share attributable to Teva |
($ | ) | 0.37 | (0.39 | ) | ($ | ) | 0.80 | (1.26 | ) | ||||||||||||||
| EPS difference(10) |
0.41 | 1.08 | 1.16 | 3.04 | ||||||||||||||||||||
| Non-GAAP diluted EPS attributable to Teva(10) |
($ | ) | 0.78 | 0.69 | ($ | ) | 1.97 | 1.78 | ||||||||||||||||
| Non-GAAP average number of shares (in millions)(10) |
1,164 | 1,155 | 1,160 | 1,148 | ||||||||||||||||||||
| (1) | For the third quarter of 2025, adjustments of legal settlements and loss contingencies mainly consisted of an update to the estimated settlement provision for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments) of $42 million. Adjustments for legal settlements and loss contingencies in the third quarter of 2024 mainly related to a provision of $350 million recorded in connection with a decision by the European Commission in its antitrust investigation into COPAXONE, and to an update to the estimated settlement provision of $121 million for the opioid cases (mainly related to the settlement agreement with the city of Baltimore and the effect of the passage of time on the net present value of the discounted payments). For the nine months ended September 30, 2025, adjustments of legal settlements and loss contingencies mainly consisted of (a) an update to the estimated settlement provision for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments) of $139 million, and (b) an update to the estimated provision recorded for the claims brought by attorneys general representing states and territories throughout the United States in the generic drug antitrust litigation of $55 million. Adjustments for legal settlements and loss contingencies in the nine months ended September 30, 2024 were mainly related to a provision of $350 million recorded in connection with the decision by the European Commission in its antitrust investigation into COPAXONE, and to an update to the estimated settlement provision for the opioid cases (mainly the effect of the passage of time on the net present value of the discounted payments and the settlement agreement with the city of Baltimore) of $239 million. |
| (2) | Goodwill impairment charges of $600 million and $1,000 million related to Teva’s API reporting unit were recorded in the three and nine months ended September 30, 2024, respectively. |
| (3) | For the nine months ended September 30, 2025, the adjustment for impairment of long-lived assets was mainly related to products in the U.S. and Europe. For the nine months ended September 30, 2025, adjustments for impairment of long-lived assets and redeemable and non-redeemable non-controlling interests primarily consisted of $561 million and $275 million, respectively, related to the classification of the business venture in Japan as held for sale. |
| (4) | In the nine months ended September 30, 2025, Teva recorded $196 million of restructuring expenses primarily related to optimization activities in connection with Teva’s Transformation programs related to Teva’s global organization and operations, mainly through headcount reduction. |
| (5) | Adjustments for the nine months ended September 30, 2024 primarily related to a change in the estimated future royalty payments to Allergan in connection with lenalidomide capsules (the generic version of Revlimid®) of $266 million. |
| (6) | For the nine months ended September 30, 2024, the redeemable and non-redeemable non-controlling interests portion of long-lived assets impairment related to the classification of our business venture in Japan as held for sale. |
| (7) | Other non-GAAP adjustments include other exceptional items for which their exclusion is important to facilitate an understanding of trends in our financial results, primarily related to the rationalization of our plants, accelerated depreciation, certain inventory write-offs, material litigation fees and other unusual events. |
| (8) | Adjustments for corresponding tax effects and unusual tax items exclusively consisted of the tax impact directly attributable to the pre-tax items that are excluded from non-GAAP net income included in the other adjustments to this table. |
| (9) | Non-GAAP tax rate is tax expenses (benefit) excluding the impact of non-GAAP tax adjustments presented above as a percentage of income (loss) before income taxes excluding the impact of non-GAAP adjustments presented above. |
| (10) | EPS difference and diluted non-GAAP EPS are calculated by dividing our non-GAAP net income attributable to Teva by our non-GAAP diluted weighted average number of shares. |
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Off-Balance Sheet Arrangements
We do not have any material off-balance sheet arrangements, except for: (i) surety underwritten guarantees Teva has provided the European Commission in an amount of euro 462.2 million, together with specified post-decision interest, which remain in force for three years, and which includes substantially similar covenants as our RCF, as disclosed in note 10 to our consolidated financial statements, and (ii) securitization transactions, which are disclosed in note 10f to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2024.
Critical Accounting Policies
For a summary of our significant accounting policies, see note 1 to our consolidated financial statements and “Critical Accounting Policies” included in our Annual Report on Form 10-K for the year ended December 31, 2024.
Recently Issued Accounting Pronouncements
See note 1 to our consolidated financial statements.
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
There has not been any material change in our assessment of market risk as set forth in Part II, Item 7A to our Annual Report on Form 10-K for the year ended December 31, 2024.
| ITEM 4. | CONTROLS AND PROCEDURES |
Disclosure Controls and Procedures
Teva maintains “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) that are designed to provide reasonable assurance that information required to be disclosed in Teva’s reports filed or submitted under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to Teva’s management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objective.
After evaluating the effectiveness of our disclosure controls and procedures as of September 30, 2025, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, Teva’s disclosure controls and procedures were effective at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
During the three months ended September 30, 2025, there was no change in Teva’s internal control over financial reporting that materially affected or is reasonably likely to materially affect Teva’s internal control over financial reporting.
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ITEM 1. |
LEGAL PROCEEDINGS |
ITEM 1A. |
RISK FACTORS |
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. |
DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. |
MINE SAFETY DISCLOSURES |
ITEM 5. |
OTHER INFORMATION |
Name and Title |
Date |
Expiration Date |
Maximum Shares Subject to Plan (1) |
|||||
(1) |
The plan includes shares to be sold solely to cover tax withholding obligations. |
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| ITEM 6. | EXHIBITS |
| 31.1 | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 * | |
| 31.2 | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 * | |
| 32 | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 * | |
| 101.INS | Inline XBRL Taxonomy Instance Document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |
| * | Filed herewith. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| TEVA PHARMACEUTICAL INDUSTRIES LIMITED | ||||||
| Date: November 5, 2025 | By: | /s/ Eli Kalif | ||||
| Name: | Eli Kalif | |||||
| Title: | Executive Vice President, Chief Financial Officer (Duly Authorized Officer) | |||||
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FAQ
How did TEVA perform in Q3 2025 on revenue and earnings?
What were TEVA’s year-to-date results for the nine months ended September 30, 2025?
What is TEVA’s balance sheet position as of September 30, 2025?
Did TEVA refinance or repay debt in 2025?
How many TEVA shares were outstanding at quarter-end?
What were TEVA’s financial expenses in Q3 2025?
