Teva Targets $7 Billion in Annual Innovative Drug Revenue by 2030
Teva Pharmaceutical Industries has unveiled a strategic plan targeting up to $7 billion in annual innovative drug revenue by 2030, aiming to reduce reliance on generics and boost profitability.
Teva Pharmaceutical Industries has unveiled a new business plan ahead of its R&D day, setting a target of $6 billion to $7 billion in annual revenue from innovative drugs by 2030. The strategy marks a significant shift for the company, which has historically relied heavily on the generic drug market.
The initiative is part of a broader strategy led by CEO Richard Francis since 2023. During this period, Teva has more than doubled its revenues from innovative therapies, which now account for over a fifth of its total turnover. Key growth drivers include Austedo for movement disorders, Ajovy for migraine prevention, and Uzedy for schizophrenia. Following the announcement, Teva shares edged up by approximately 0.1% on both the Tel Aviv Stock Exchange and Wall Street.
Expanding the Pipeline and Financial Goals
A cornerstone of the new strategy is the objective to launch a new innovative drug every year through 2030. To achieve this, Teva is advancing a robust clinical pipeline. A notable development occurred in celiac disease research, where an experimental treatment blocking the IL-15 protein met its primary endpoint in a Phase 2a clinical trial, with expanded testing slated for the second half of 2027.
Additionally, the company is progressing an experimental treatment for vitiligo toward advanced trials, while exploring the same mechanism for certain types of hair loss. Early-stage research is also underway in oncology, asthma, and inflammatory bowel diseases. Financially, Teva targets a gross profit margin exceeding 75% for innovative drugs by 2030, mid-single-digit total revenue growth between 2026 and 2030, and an annual free cash flow surpassing $3.5 billion by the end of the decade.
