Teva Pharmaceutical Industries (TASE: TEVA; NYSE: TEVA) published two positive announcements yesterday. The first concerns collaboration with Royalty Pharma (Nasdaq: RPRX) on accelerating development of an original drug for chronic skin condition vitiligo. The second contains the main points of a presentation to be delivered by Teva president and CEO Richard Francis at the 44th annual J.P. Morgan Healthcare Conference tomorrow (Tuesday), including forecasts for the coming years.
Under the agreement with Royalty Pharma, the companies will jointly develop the anti-IL-15 antibody, TEV-‘408, which is in a phase 1b trial for the treatment of vitiligo and (unconnected with the current agreement) is in a 2a trial for treatment of celiac. Royalty Pharma will pay Teva $500 million to finance the joint costs of development, of which $75 million is R&D co-funding to conduct a phase 2b study due to start in 2026. Depending on the results of this trial, Royalty Pharma will have an option to pay an additional $425 million to finance phase 3 trials. If the trials are successful and the drug is launched, Teva will pay Royalty Pharma royalties on worldwide sales.
“Strategic collaborations fuel innovation. This agreement with Royalty Pharma enables us to advance our science more efficiently and accelerate our pipeline to deliver meaningful solutions for patients worldwide,” Francis said.
At the same time, as mentioned, Teva released forecasts for the coming years. The guidance for 2025 is unchanged, but Teva now says that its revenue will be close to the lower end of the guidance range ($16.8-17 billion), EBITDA will be in the middle of the range ($4.8-5 billion), while earnings per share will be close to the upper end ($2.55-2.65), as will free cash flow ($1.6-1.9 billion).
For 2026, the company sees sales similar to those in 2025 or slightly lower. It sees low single-digit growth in 2027, and a mid single-digit compound annual growth rate from then until 2030. EBITDA and operating profit are expected to grow this year in comparison with 2025, and to continue growing thereafter. Free cash flow is targeted to grow in 2026, and to exceed $2.7 billion in 2027 and to reach over $3.5 billion by 2030. Net leverage is accordingly expected to fall to less than two times in 2027.
Teva has a market cap of $36.7 billion, after a 53% rise in its share price in the past year. On the Tel Aviv Stock Exchange this morning, Teva’s share price is up 0.96%, at NIS 105.
Published by Globes, Israel business news – en.globes.co.il – on January 12, 2026.
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