Teva Pharmaceutical (TEVA) Stock Forecast & Price Target

Teva Pharmaceutical Industries is experiencing strong growth in its generics segment, which is projected to generate $9.5 billion in global sales for 2024, thereby increasing its contribution to overall sales from 55% to 57%. Furthermore, the company is successfully expanding its international footprint, with sales outside the United States growing by 5.3% year-over-year, surpassing the 4% growth seen in US sales, and notable new market entries for products like Ajovy and ongoing expansions for Austedo. Lastly, Teva's strategic geographic expansion efforts are reflected in its increasing European sales, which now comprise 31% of total revenue, along with international sales climbing from 13% to 15% since 2022.

Teva Pharmaceutical Industries has faced significant challenges, as combined U.S. sales of affected products have drastically diminished since 2020, culminating in these products contributing only 4% to total U.S. sales in 2024. Additionally, although Teva reported a 6% increase in total sales year-over-year, the active pharmaceutical ingredient (API) segment experienced a sharp 16% decline in third-party sales in 2023, indicative of oversupply and margin erosion in the generics market. Furthermore, a sequential analysis revealed a troubling 13% decline in U.S. generic sales for the quarter, reinforcing concerns about the sustainability of Teva's revenue growth amid competitive pressures.