Teva's 3 Key Branded Drugs Grew Sales 33% Last Quarter. Is This Turnaround Stock a Buy Right Now?
Teva's three branded therapies of Austedo, Ajovy, and Uzedy brought in $1.1 billion in third-quarter revenue.
Teva Pharmaceuticals (TEVA) has experienced a sales increase of 33% in its three key branded drugs in the last quarter, signaling a potential turnaround for the company. This growth is attributed to their pivot towards higher-margin therapies, such as Austedo, Ajovy, and Uzedy, which contributed to a 33% increase in sales for the quarter to $1.1 billion.
Despite a 16% decrease in sales from generics, which now stand at $2.16 billion, Teva's gross profit margin improved from 51.4% to 55.5% and non-GAAP gross profit rose by 345 basis points to 58.7%, the highest in a decade. The company is also preparing to launch Weltruza, a once-monthly injectable for schizophrenia, and Ecopipam for pediatric Tourette syndrome.
Teva's leadership in research and development, with a focus on biosimilars and immunology/neuroscience therapies, bodes well for future growth. The company completed an equity milestone by transitioning from American Depositary Shares (ADS) to direct trading of ordinary shares, improving investor access and reducing fees. Despite a 47% year-over-year drop in earnings per share to $0.20, Teva is still trading at less than 21 times forward earnings, positioning it as a potentially attractive investment opportunity.
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