Teva CEO Says Stronger Cash Flow Allows Larger Business-Development Opportunities

Teva president and CEO Richard Francis said on November 11 that improving cash flow gives the company scope to consider larger business-development opportunities while continuing to invest internally. Speaking after Teva's R&D Day in New York, he said the company continually examines external opportunities, with product fit and valuation guiding its decisions. Francis also said further development-financing partnerships are possible, describing partners as a way to accelerate development or pursue additional indications. He said improving finances also allow Teva to undertake more work itself, and defended continued investment in generics and biosimilars as part of the company's strategy. At R&D Day, Teva outlined an ambition for $6 billion to $7 billion in innovative-medicine revenue in 2030 and free cash flow exceeding $3.5 billion that year. Its outlook calls for mid-single-digit total-revenue growth from 2026 through 2030 and a net-debt-to-adjusted-EBITDA ratio of 2.0 by the end of 2027. The company said its capital-allocation framework provides for pipeline investment, product launches and business development alongside shareholder returns. Teva launched its Pivot to Growth strategy in 2023 and says innovative-medicine revenue has more than doubled since then. Francis said in the company's release: "With our Pivot to Growth strategy, we set out to transform Teva." The company described ten innovative pipeline programs, including seven late-stage assets, and the potential for one innovative-medicine launch a year through 2030, subject to development and approvals.