Teva is getting ready to close the first chapter of its “pivot to growth” strategy.
The company’s restructuring has involved manufacturing site closures, a shift away from some lower-margin generics, and more recently, plans to sell off its API unit. The first quarter of 2024 marked Teva’s fourth consecutive quarter of revenue growth, CEO Richard Francis told investors on Wednesday, as he looks toward the next phase in the strategy.
“We continue to optimize our manufacturing network,” Francis told Endpoints News. “Outside of that, I don’t see significant restructuring at this point in time.”
Teva closed three generics manufacturing sites in 2023, bringing its total footprint to 49 sites. The company plans to close or divest additional sites to reach a total of 40 to 42 by 2027, CFO Eli Kalif told investors on the earnings call.
“As we laid out over a year ago, we had a plan to return to growth, accelerate growth and sustain growth,” Francis said. “We’ve made good progress on return to growth.”
Francis touted two experimental drugs as key to the acceleration phase: Teva’s experimental long-acting injectable formulation of the schizophrenia treatment olanzapine and its dual-action asthma rescue inhaler candidate. The company read out positive Phase 3 results for olanzapine on Wednesday morning and hopes to file a regulatory submission this year, Francis told Endpoints News.
Teva’s Huntington’s disease treatment Austedo and migraine medicine Ajovy continue to be a big part of its growth plans, generating $282 million and $45 million in the US last quarter.
Francis also laid out plans to launch six biosimilars by 2027. Its recently approved Humira biosimilar, Simlandi, will launch this quarter following multiple rejections over manufacturing issues.