On November 5, 2025 Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) reported results for the quarter ended September 30, 2025.
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Mr. Richard Francis, Teva’s President and CEO, said, "Our innovative portfolio driving the 11th consecutive quarter of growth in the third quarter reflects the accelerating momentum of our transformation and the strength of our innovation-led Pivot to Growth strategy. Our key growth drivers—particularly our innovative medicines—delivered a 33% increase in local currency, underscoring their impact on both patient outcomes and our financial performance. As we continue executing our strategy, we remain firmly on track to reach our 30% non-GAAP operating profit margin by 2027 and ~$700 million of net savings target."
Mr. Francis added, "Following the conclusion of the IRA pricing negotiations, we are reiterating our strong confidence in our AUSTEDO 2027 target. Our differentiated innovative portfolio is now a defining strength for Teva as we transform into a leading innovative biopharma, while our world-class generics business continues to provide a resilient foundation. With our talented team and unwavering commitment to patients, we are confident about Teva’s future and our ability to deliver enduring value to all our stakeholders."
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. As part of this strategy, in the second quarter of 2025 Teva entered its "Accelerate Growth" phase, during which 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.
Delivering on our Growth Engines – on the first pillar, our key innovative brands – AUSTEDO, AJOVY and UZEDY – continued to demonstrate strong performance. Collectively, these products grew ~33% in Q3 2025 YoY in local currency. For AUSTEDO, we are raising the 2025 revenue outlook by $50 million – $100 million to a new range of $2,050 million – $2,150 million. For AJOVY and UZEDY, we are reaffirming our previous outlooks of $630 million – $640 million and $190 million – $200 million, respectively. The conclusion of the IRA pricing negotiations reinforces confidence in our long-term outlook for AUSTEDO. We are on track for our 2027 revenue target of >$2.5 billion for AUSTEDO and peak year revenue target of >$3 billion. During the third quarter of 2025, the FDA approved an expansion of AJOVY’s indication, to include its use as an anti-CGRP preventive treatment for pediatric episodic migraine in patients aged 6 to17 years who weigh 45 kg or more. This approval marks an important step in Teva’s efforts to advance care for neurological conditions.
Stepping Up Innovation – on the second pillar, we continued to accelerate the development of certain key pipeline assets. For olanzapine LAI, we presented new long-term safety data from the SOLARIS Trial with no PDSS observed and anticipate filing its New Drug Application (NDA) in Q4 2025. Teva’s investigational therapy emrusolmin (TEV-56286) received U.S. FDA Fast Track designation for the treatment of Multiple System Atrophy (MSA), a rare and progressive neurodegenerative disease with no approved treatments to slow its progression —another step forward in Teva’s commitment to advancing innovative neuroscience therapies. Phase 3 programs for duvakitug (anti-TL1A) in UC and CD were initiated by Sanofi and Teva in October 2025; on track to achieve target enrollment levels in the adult and pediatric populations for DARI’s (Dual-action Asthma Rescue Inhaler) Phase 3 trial at the end of 2025.
Sustaining Our Generics Powerhouse – on the third pillar, we remain focused on strengthening our world-class global generics business with a streamlined portfolio of high-value complex generics and biosimilars, a robust pipeline, and an integrated global manufacturing and commercial footprint. In the U.S., we received FDA approval and launched liraglutide injection (the generic version of Saxenda), the first-ever generic GLP-1 treatment indicated for weight loss. This milestone strengthens Teva’s complex generics portfolio, expanding access to effective weight management options for adults and adolescents. Our recently launched biosimilars – SIMLANDI (adalimumab-ryvk), SELARSDITM (ustekinumab-aekn) and EPYSQLI (eculizumab-aagh) – continue to grow as does our legacy biosimilar portfolio.
Focusing our Business – Lastly, on the fourth pillar, to accelerate our growth, we are actively transforming and modernizing our business through Teva Transformation programs. On May 7, 2025, we announced that these programs are expected to generate ~$700 million of net savings through 2027. We are on track to achieving our targeted savings for 2025.
Teva continues in its effort to sell its active-pharmaceutical ingredient (API) business. 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. On December 31, 2024, Teva classified the business (including its R&D, manufacturing and commercial activities) as held for sale.
Third Quarter 2025 Consolidated Results
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 in all of our segments, as well as lower year-over-year proceeds from the sale of certain product rights.
Exchange rate movements during the third quarter of 2025, net of hedging effects, positively impacted revenues by $106 million, compared to the third quarter of 2024.
Exchange rate movements during the third quarter of 2025, including hedging effects, had a positive impact of $21 million on our operating income and non-GAAP operating income compared to the third quarter of 2024.
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. Non-GAAP gross profit was $2,475 million in the third quarter of 2025, an increase of 6% compared to $2,327 million in the third quarter of 2024. Non-GAAP gross profit margin was 55.3% in the third quarter of 2025, compared to 53.7% in the third quarter of 2024. The increase in both gross profit margin and non-GAAP gross profit margin was mainly due to higher revenues from AUSTEDO.
Research and Development (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.
Selling and Marketing (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 to support revenue growth in our key innovative products and in generic products.
General and Administrative (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.
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 in the third quarter of 2025 was $882 million, compared to an operating loss of $51 million 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. This increase was mainly due to the goodwill impairment charge and higher legal settlements and loss contingencies recorded in the third quarter of 2024. Non-GAAP operating income in the third quarter of 2025 was $1,294 million representing a non-GAAP operating margin of 28.9% compared to $1,214 million representing 28.0%, respectively, in the third quarter of 2024. The increase in non-GAAP operating margin in the third quarter of 2025 was due to higher gross profit margin, partially offset by an increase in operating expenses as a percentage of revenues.
Financial expenses, net in the third quarter of 2025 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.
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.
Non-GAAP tax rate in the third quarter of 2025 was 14.7%, compared to 16.0% in the third quarter of 2024. Our non-GAAP tax rate in the third quarter of 2025 was mainly affected by changes in deferred tax balances due to statutory tax rate changes and interest and inflation adjustments related to the agreement with the Israeli Tax Authorities. Our non-GAAP tax rate in the third quarter of 2024 was mainly affected by the generation of profits in various jurisdictions with different tax rates, an adjustment to Teva’s corporate tax rate in Israel on losses related to non-qualified tax incentive activities in Israel, recording of valuation allowance with respect to certain carry over credits outside of Israel, as well as infrequent or non-recurring items.
We expect our annual non-GAAP tax rate for 2025 to be between 15%-18%, slightly higher than our non-GAAP tax rate for 2024, which was 15.3%, mainly due to a net tax benefit related to deferred tax assets resulting from intellectual property-related integration plans in 2024.
Net income attributable to Teva and diluted earnings per share in the third quarter of 2025 were $433 million and $0.37, respectively, compared to a net loss attributable to Teva and loss per share of $437 million and $0.39, respectively, 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. Non-GAAP net income attributable to Teva and non-GAAP diluted earnings per share in the third quarter of 2025 were $910 million and $0.78, respectively, compared to $798 million and $0.69, respectively, in the third quarter of 2024.
Adjusted EBITDA was $1,394 million in the third quarter of 2025, an increase of 5%, compared to $1,327 million in the third quarter of 2024.
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.
Non-GAAP information: non-GAAP adjustments for non-GAAP net income attributable to Teva and non-GAAP diluted EPS in the third quarter of 2025 were $478 million and consisted of the following adjustments:
Amortization of purchased intangible assets of $144 million, of which $134 million is included in cost of sales and the remaining $10 million in S&M expenses;
Impairment of long-lived assets of $79 million;
Legal settlements and loss contingencies of $60 million;
Contingent consideration expenses of $16 million;
Equity compensation expenses of $34 million;
Restructuring expenses of $29 million;
Financial expenses of $7 million;
Other non-GAAP items of $51 million; and
Corresponding tax effects and unusual tax items of $58 million.
We believe that excluding such items facilitates investors’ understanding of our business including underlying trends, thereby improving the comparability of our business performance results between reporting periods.
For a reconciliation of the U.S. GAAP results to the adjusted non-GAAP figures and for additional information, see the tables below and the information included under "Non-GAAP Financial Measures." Investors should consider non-GAAP financial measures in addition to, and not as replacement for, or superior to, measures of financial performance prepared in accordance with GAAP.
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.
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, 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. 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 average debt maturity was approximately 5.85 years as of September 30, 2025, compared to 5.5 years as of December 31, 2024.
Segment Results for the Third Quarter of 2025
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.
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%
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.
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. In August 2025, the FDA approved AJOVY for the preventive treatment of episodic migraine in children and adolescent patients aged 6 to 17 years.
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 volumes.
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 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 a 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, in addition 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.
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.
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.
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.
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 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
Our Europe segment includes the European Union, the United Kingdom and certain other European countries.
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.
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.
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%)
Total $ 1,235 $ 1,265 (2%)
*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.
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.
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.
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 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.
International Markets Segment
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.
The following table presents revenues, expenses and profit for our International Markets 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 $ 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 § § § §
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.
Revenues from our International Markets segment in the third quarter of 2025 were $557 million, a decrease of 9%, or 10% in local currency terms 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
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:
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%)
Total $ 557 $ 613 (9%)
*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 pursue 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 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.
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 Press Release, 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.
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.
Outlook for 2025 Non-GAAP Results
$ billions, except EPS or as noted January 2025 May 2025 July 2025 November 2025
Revenues* $16.8 – $17.4 $16.8 – $17.2 $16.8 – $17.2 $16.8 – $17.0
AUSTEDO ($m)* 1,900-2,050 1,950-2,050 2,000-2,050 2,050-2,150
AJOVY ($m)* ~600 ~600 630-640 630-640
UZEDY ($m)* ~160 ~160 190-200 190-200
COPAXONE ($m)* ~370 ~370 ~370 ~370
Operating Income 4.1 – 4.6 4.3 – 4.6 4.3 – 4.6 4.4 – 4.6
Adjusted EBITDA 4.5 – 5.0 4.7 – 5.0 4.7 – 5.0 4.8 – 5.0
Tax Rate 15%-18% 15%-18% 15%-18% 15%-18%
Finance Expenses ~0.9 ~0.9 ~0.9 ~0.9
Diluted EPS ($) 2.35 – 2.65 2.45 – 2.65 2.50 – 2.65 2.55 – 2.65
Free Cash Flow** 1.6 – 1.9 1.6 – 1.9 1.6 – 1.9 1.6 – 1.9
CAPEX* ~0.5 ~0.5 ~0.5 ~0.5
Foreign Exchange Volatile swings in FX can negatively impact revenue and income
* Revenues and CAPEX presented on a GAAP basis.
** Free Cash Flow includes cash flow generated from operating activities net of capital expenditures and deferred purchase price cash component collected for securitized trade receivables.
Conference Call
Teva will host a conference call and live webcast along with a slide presentation on Wednesday, November 5, 2025 at 8:00 a.m. ET to discuss its third quarter 2025 financial results and overall business environment.
A question & answer session will follow.
In order to participate, please register in advance here to obtain a local or toll‐free phone number and your personal pin.
A live webcast of the call will be available on Teva’s website at: www.tevapharm.com
Following the conclusion of the call, a replay of the webcast will be available within 24 hours on Teva’s website.
(Press release, Teva, NOV 5, 2025, View Source [SID1234659477])