Teva Pharmaceutical Industries (TEVA) Bank of America Global Healthcare Conference summary

Strategic direction and capital allocation

• Achieved investment grade status with all three credit agencies a year ahead of target, reflecting improved EBITDA outlook and disciplined capital allocation.

• Capital allocation now shifts from debt repayment to investing in growth drivers, pipeline development, business development (BD), and shareholder returns.

• Active in BD but maintains discipline, focusing on value and return; potential for larger transactions as cash builds.

• Planning for increased deal capacity in the next two to four years as financial position strengthens.

• Focus remains on innovative assets, especially in CNS, neurology, psychiatry, movement disorders, immunology, and rare diseases, with continued investment in biosimilars.

R&D approach and pipeline productivity

• R&D strategy emphasizes development over discovery, targeting validated mechanisms and optimizing antibodies for efficacy, safety, and tolerability.

• High productivity achieved by focusing on de-risked assets and leveraging antibody engineering capabilities.

• Maintains humility in CNS research, partnering externally for novel discoveries and prioritizing probability of success.

• Late-stage pipeline seen as a significant growth driver, with multiple assets expected to reach market.

Global sourcing, partnerships, and innovation

• Pursues science globally, including China, and values both internal and external pipeline assets equally.

• Uses creative partnerships, such as with Fosun Pharma, to accelerate clinical development and data generation.

• Two key assets, duvakitug and anti-IL-15, offer multiple indications, creating substantial pipeline breadth.

• Expects five product launches in five years, with subsequent launches every 12-18 months, driving margin expansion.