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Teva Pharmaceutical Industries said it plans to lay off approximately 2,900 employees—around 8% of its global workforce—by 2027 as part of a cost-cutting effort aimed at achieving a 30% operating margin. The announcement came during a call with analysts following the release of the company’s first-quarter earnings.
The company reported first-quarter revenue of $3.89 billion, slightly below expectations of $4 billion. However, adjusted earnings per share came in at 52 cents, beating forecasts of 48 cents. Quarterly revenue reflected modest year-over-year growth of 5%.
Teva shares rose 8.2% in premarket trading following the announcement.
Sales of Austedo, Teva’s flagship treatment for involuntary movements caused by neurological conditions, exceeded expectations and led the company to raise its full-year revenue forecast for the drug to between $1.95 billion and $2.05 billion. Austedo sales surged 39% in the first quarter. Sales of Ajovy, a migraine treatment, rose 26%, with Teva reiterating its 2025 sales forecast of $600 million.
The company said it does not currently expect to be affected by the Trump administration’s evolving tariff policy. Teva raised its overall annual revenue forecast by $200 million and now expects total 2025 revenue of between $16.8 billion and $17.2 billion.
The updated forecast excludes revenue from Teva’s former operations in Japan, which were sold, but includes expected income from its active pharmaceutical ingredient (API) division, which is still slated for sale. It also does not factor in potential milestone payments from Sanofi, which are tied to clinical trial progress for a Crohn’s disease treatment, Duvakitug. Teva also increased its projected operating profit by $200 million to a range of $4.3 billion to $4.6 billion.
Teva shares have gained 15% since the start of April, continuing a positive trend. Still, the stock is down 27% for the year, largely due to a weaker-than-expected profitability outlook issued in early 2025.
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“We began the year with a stable performance, marking our ninth consecutive quarter of revenue growth,” said Teva President and CEO Richard Francis. “Our key innovative medicines continue to show strong momentum, generating $589 million in revenue—each with over 25% growth year over year. We also delivered steady results in our generics business across all three regions, with our biosimilar portfolio complementing our offerings.
Francis added: “We are now entering the acceleration phase of our ‘Pivot to Growth’ strategy. We have a clear roadmap to transforming Teva into a leading biopharma company, with an expected 30% operating margin and $700 million in net savings by 2027. We are driving innovation-led growth, reinforcing our generics platform, and streamlining operations while sharpening our business focus. With these results, we are updating our 2025 forecast and reaffirming our 2027 targets.”