Momentum in Innovation and Pipeline Additions to Drive Teva's Long-Term Outperformance

Teva Pharmaceutical is one of the leading global generic drug manufacturers with roughly 60% of its total revenue coming from generics and off-patent branded drugs. Generic drugs in developed markets such as the US and Europe typically experience low- to mid-single-digit year-over-year price erosion due to competition and regulatory pressures. Since price headwinds exist predominantly in small-molecule oral tablets that are easy to produce, Teva prioritized other parts of its business for future growth.