S&P upgrades Teva rating on deleveraging and pipeline strength

S&P Global Ratings has upgraded Teva Pharmaceutical Industries Ltd. to a 'BBB-' rating from 'BB+' following improvements in the company's financial health and pipeline strength. The ratings firm highlighted Teva's successful execution in branded products, stabilization in generics, and a trajectory towards a mid-3x leverage level by year-end, down from 4x in the second quarter.

The stable outlook is based on expectations of solid operating performance driven by growth in higher-margin branded products and potential launches of branded and biosimilar drugs, despite challenges in generic Revlimid in 2026 and Austedo in 2027. Teva's key innovative brands, including Austedo, Ajovy, and Uzedy, contributed more than $3.1 billion in revenue in 2025 and are projected to drive significant revenue growth in 2026 and 2027.

The company has also reduced its gross debt from nearly $29 billion in 2018 to approximately $17 billion in 2025, with forecasts of strong annual adjusted free operating cash flow and a focus on debt reduction and cost savings.

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