Teva (TEVA) Q2 FY26 earnings call: guidance and Q&A

Inquired about confidence in AUSTEDO's formulary positioning in 2027 given IRA, and potential impact of Trump tariffs on supply chain.

Management is confident in AUSTEDO's ability to capture patients due to Medicare requirements for negotiated products, product profile, and demand, despite IRA. They are assessing the new Trump tariff announcement but noted Teva's significant U.S. manufacturing presence.

“all Medicare plans are required to cover negotiated products in their Part D formularies. That would be like obviously AUSTEDO XR. And so based on that, I think based on the product profile and the significant patient demand as well as the physician excitement around AUSTEDO XR. I think we remain confident in our ability to continue to make sure we can capture a significant amount of patients as we move into 2027.”

asked by Jason Gerberry · answered by Richard Francis

Asked about the timing of Celiac data readout, the biomarker used in a prior Phase Ib study, and the gluten challenge amount in the ongoing study.

Data will be in H2 2026, as database lock timing differs from enrollment completion. The prior biomarker was free acid binding protein. The ongoing study uses 3 grams of gluten daily for 6 weeks.

“The enrollment that you see on clinical drives. The changes you see there don't always correlate to when we're doing the database lock. So that's the simple answer. I have this. So there's nothing slow or fast about it. It's just as it is. So we'll have that data in the second half of this year.”

asked by Umer Raffat · answered by Eric Hughes

Inquired why biosimilar growth is becoming more meaningful and if U.S. market changes or regulatory actions could further open it up.

Biosimilars are exciting due to strong team performance (2 of 5 U.S. products #1), ability to navigate complex U.S. market, and positive early signs from European launches. No major U.S. market changes are driving this, but Teva's capabilities allow success. On track to exceed $800M target by 2027.

“2 out of our 5 products in the U.S. market are #1. And I think a third 1 is about to become #1. And that just shows, I think, our capability, which leads a bit into part of your second question, what has changed in the U.S. market? Well, actually, nothing really is changing. It's actually a very difficult complex, fragmented market.”

asked by Louise Chen · answered by Richard Francis

Asked why Forte's 0.127 bar is used instead of CALYPSO's 0.4-0.5 million, and how to interpret data like 0.15, 0.2, or 0.3 for clinical meaningfulness.

Forte's data is readily available and comparable; CALYPSO data is not. The focus is on the delta between placebo and active. Clinical meaningfulness will also consider symptomatology data.

“The CALYPSO data, I'm not sure if that's something readily available to us right now. So if we can get that data, that would be great to compare it to. I think the important thing is that you have to remember, these are all somewhat artificial gluten challenge they are different from study to study.”

asked by Dennis Ding · answered by Eric Hughes

Asked about 408's mechanistic advantages over CD122/IL-15/IL-2 compounds, and ecopipane's positioning relative to D2 antipsychotics for Tourette syndrome.

TL1A targets the ligand, allowing for cleaner action and target engagement measurement, enabling quarterly subcutaneous dosing. Ecopipane, a D1 antagonist, offers better tolerability than antipsychotics, potentially becoming a preferred option over time despite current off-label use and generic D2 options.

“We like to go after the ligand. It's clean. You hit the free ligand and the cytokine in the system. When you hit a receptor, you run the risk of creating some off-target complications doing that. So we just by strategy, do it a different way, but there's nothing wrong with either way.”

asked by David Amsellem · answered by Eric Hughes

Asked about the addressable market for fibronostics in IBD, and the development path/trial design for HS (Phase II/III, primary endpoint).

Both HS and fibronostics have strong scientific justification and market opportunity. HS will likely follow a traditional Phase IIb then Phase III program with primary endpoints around 16 weeks. Fibronostics aims to differentiate by addressing a major complication of Crohn's disease with no approved therapies.

“HS is another market that's growing. You see this out there with the competition. It's a high unmet medical need. This will continue to grow. So the market opportunity is definitely there. I think we have a good chance on the probability of success, and it's something we can execute very quickly.”

asked by Ashwani Verma · answered by Eric Hughes

Asked about the continued elevated AUSTEDO channel inventory and its impact on H2, and why EBITDA guidance was maintained despite strong innovative brand performance.

AUSTEDO inventory drawdown from Q4 2025 is still ongoing and expected to complete in H2 2026, with Q4 revenue impacted by IRA. EBITDA guidance reflects continued investment in innovative portfolio and biosimilars, and some smaller in-line costs.

“we had that inventory build in Q4 2025. And we're expecting to draw down. We saw some of that drawdown occur in the first half of the year, but not fully complete. And so we need to see the rest of that come down in the second half of the year and Q4.”

asked by Glen Santangelo · answered by Richard Francis

Asked about the extent of pursuing fibrotic indications for TL1A and its differentiation, and launch preparations for olanzapine and ecopipane.

TL1A's fibrotic indications (HS, fibronostics Crohn's) are initial steps to prove the anti-fibrotic principle; future expansion to purely fibrotic diseases is possible. Olanzapine launch preparations are extensive, leveraging market understanding. Ecopipane launch will leverage AUSTEDO experience for rare, undertreated conditions.

“we'll be launching a new product every year. So this is a muscle that we've been building. We're enthusiastic about it. We're not in all of it. We're leaning into it. And so I think you'll see an excellent launch of.”

asked by Matt Dellatorre · answered by Richard Francis

Asked about volume vs. price for AJOVY's improved guidance and reasons for Europe's softer performance.

AJOVY's growth is driven by market share gains across all regions, with U.S. benefiting from favorable contracting and gross-to-net. Europe's softness is due to fewer high-value launches and a low cough and cold season, but biosimilar launches are expected to improve performance.

“in the U.S., there is some favorability on the contracting and what we've done there on gross to net, but also market share gains in the U.S. We've also got market share gains in Europe and in international markets. And it's important to note that we are growing above the market in all of our regions.”

asked by Chris Schott · answered by Richard Francis