Teva Pharmaceutical Industries Limited American Depositary Shares Barclays 24th Annual Global Financial Services Conference

Thank you for having us.

Okay. I will try and be brief because obviously I could spend the whole time talking about that. Where we are in the story, to answer that first part of the question. Pivot to growth we started in 2023. It was a three-part plan, return to growth, accelerate growth, and maintain growth. We are in the second chapter or phase, you could say. I would say there is a lot more to come, and we will be explaining why there is a lot more to come. I think over this period of time, what we have shown is we have started with the ambition of transforming Teva from a pure-play generics company into a world-leading biopharma company.

And very quickly, over 3 and a half years, that has become something which seemed slightly unbelievable in 2023 to something that is very believable now, just because if you look at the products we have, the pipeline we have, the momentum we have, then we clearly are executing well on that ambition. The pivot to growth strategy, and I see many familiar faces in the audience here, so you're used to me being quite boring about this, but I think the repetition is why we've done well. Pivot to growth is based on four pillars. Deliver on our growth engine, step up innovation, create a generics powerhouse, and focus the business, focus capital. We've been executing this seamlessly for the last 3 and a half years. It will be executed seamlessly going forward for the next, I'd say, 7 at least.

Because we have a clear idea how we can create shareholder value, how we can continue to grow the top line and the bottom line. A lot of that comes from the fact that we've taken some innovative products, AJOVY, AUSTEDO, and UZEDY, and accelerated them and made people start to model them in a way that they wouldn't have modeled them before in their calculations. That's because we are really, really good at commercializing products. With step-up innovation, which I'm sure Erik will get a lot of questions on, and he should, rightly so, we've taken a company that was questioned whether you could develop innovative products and move them into the clinic and then move them through the clinic. I think we've done that. I think in most metrics, we are upper quartile.

So that means if the first pillar is we can sell stuff, and the second pillar, we're developing stuff very quickly, and I think some really unique assets, and we'll talk about the A readouts we have this year, then clearly those two show a lot of potential to create a lot of growth on the top and the bottom line going forward. Then on the third pillar, we've gone from a declining generics business to one that's now stabilized and over the last few years accelerated or grown, and we're going to add more and more biosimilars to that. Then finally, because I'm only taking 2 minutes, is we've returned to capital allocation from a deal-making perspective. So we've obviously done that with our first deal with Emalex, which I think we've seen as being strategically aligned to what we said we're going to do.

Be in the CNS space. It's very synergistic. I think we're going to be able to turn that asset into an asset that is going to fulfill those financial requirements that I've laid out. Then because my CFO is looking at me now, I must mention the fact that we've done two other things, which is actually today is a big day for us. So we've taken ADS shares and converted those to ordinary shares. So those will allow more investors to have access to the Teva opportunity, which I think is still significant going forward. Then the final thing, which I think relates to something which we never talk about anymore, which we did talk about a little bit at the start of my tenure, which is debt. So there's a good thing about debt.

Our debt has gone down considerably, and because we have become investment-grade now across all three of the rate agencies, over a year ahead of when we said we were going to do that, we did a refinancing last week where we were hugely oversubscribed. I think we got that financing done in a very short period of time at a very good price. That reflects, once again, all the other things I have said, because obviously that is looked at very closely. So congratulations to the team who did that last week. There is a lot within that, and I am sure we can go deeper, but maybe the fact there is a lot within it is why I am so convinced that the value creation story that we have started has a long way to run with Teva.

Obviously, it is an interesting thing. It is a very dynamic world we live in, geopolitically, in most areas, actually. I think what Teva has shown is that we have a real capability to maneuver within that world. But to your specific point on tariffs, I think we have the largest generic manufacturing footprint in the United States. I think that gives us an advantage on that one level. But I also think we have shown with our work with the administration, both through things we have done with HHS and IRA, as well as the potential deal we are going to close with the administration, that you saw at the White House a couple of weeks ago, that I think we have the ability to work well with this administration because we are a unique company.

We bring, I think it is close to $40 billion of savings to the U.S. every year, as well as the fact that we bring innovative. I think our seat at the table gives us a significant share of voice. But is it a competitive advantage? As we work together, you will find I am more measured. I do not lean into things too much. Let us see how it plays out. I think we are in a strong position right now. But I would also say that the changing dynamics of our portfolio, particularly around biosimilars, probably lends itself to also helping us in that more challenging environment.

I think everybody's trying to get me, and I can understand why, to give guidance for 2027 on AUSTEDO. But I did give guidance in 2023 on AUSTEDO, so I gave it really ahead of schedule at $2.5 billion. Look, the way I think about it, the first way I want people to always think about how I answer this question, I answer this question with $3 billion. This product will do over $3 billion, and that's the most important thing to be thinking about. What it does in 2027 is just a journey on that road to $3 billion. Okay? Greater than $3 billion. What will it be? Well, obviously, we've seen good momentum this year with AUSTEDO. The team at the U.S. are doing a great job. Where we'll be next year with AUSTEDO, we'll give guidance on that.