Teva Pharmaceutical Industries U.S. All Stars Conference

Well, firstly, thanks, Chris, for hosting. I appreciate it, and thank you getting the early session in. That is a question we could spend 45 minutes talking about, but I will try and make it succinct as possible. I think if I just pick some simple headlines is, when we started this, and probably the reason you did not cover us back then was we were a pure play generics company. You probably had big question marks as well. With Pivot to Growth, we said we are going to become a world-class biopharma company. That seemed like a hard leap of faith for anybody to believe. When you think about what we have done, it has really been focused on accelerating our innovative business and stabilizing our generics business, and fundamentally changing our portfolio. It comes down to the four pillars we have.

Deliver on our growth engine, step up innovation, create generics powerhouse, and focus the business. The biggest change has been by taking a pure play generics company and making it now a very credible and one of, I think, the most exciting biopharma companies. To do that has to have substance. Delivering on our growth engines, all the products we have in the market right now are growing at double digit. Innovative business growth 40% in Q2, and a lot of long-term potential growth there. Step up innovation, Eric Hughes, the head of R&D. When people did not think we could do R&D, we now have, I think, one of the most attractive and I would say good risk profile late-stage pipelines out there.

And our generics business, not only did we stabilize it, we grew it, and we've changed the portfolio with biosimilars there very quickly. And then the final part was focus the business. It's about capital allocation. I think what the conversations we have is about where do you allocate capital? Where's the best return short, medium, and long term? And if you look at this transition over the last four years, we haven't changed our OpEx as a percentage of revenue at all throughout that period, really, which means we've had to reallocate capital to do all those things that I've said because it takes money to launch innovative products. It takes money to put things through the clinic.

So I think the biggest change has been the strategy, but the execution of the strategy, quarter on quarter, which I think is one of the things we had to show people is a strategy which was very detailed, was still questioned, that we've executed. And I'd like to think we've become known as a company that does what it says, and we're quite transparent about what we want to do, so we can be measured against it, which is a bit uncomfortable. But I think, if anybody reads through any transcripts, we're super consistent.

Yes. And we know that when people don't believe the targets we have, we know we have to achieve them to get belief.

But now I think we have that momentum.

I think it's more the former. It's quite extraordinary. I've been doing pharma for 35 years and when I look at what Teva has, what we have in front of us now from an innovative pipeline, it's extraordinary, and I sort of pinch myself sometimes. What do I mean by that? We have duvakitug to galunisertib, which we now have in 4 indications in the clinic. Well, 2 indications in the clinic and about 2 more about to go in. So we have a pipeline in a product, which I've never had, by the way. I've heard other CEOs talk about it, never had it. Then we have anti-IL-15, which we've shown some data in select diseases of vitiligo. And we know there's 2 other indications we can go to. So that's another pipeline in product.

We have 2 products which are pipeline in product, but then we have our late stage olanzapine, ecopipam, UZEDY. And I think you mentioned there, we basically have a launch every year for the next 5 years, and then probably a launch every 18 months for the considerable future.

For me, it's exactly what you said. I think we just have a story now where if we can keep executing, I'd even argue to plus or minus, we will still keep growing this company top and bottom line, which means we keep creating value for shareholders. And I think that path is clearer than it's ever been. We were talking before we get on stage, and people say to me, have I missed the boat?

Yeah. I say, "Absolutely not.

You haven't because you missed the good upside, but those were really hard yards.