06. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 68
Share Price as of September 27: $17.46
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a prominent player in the global pharmaceutical industry, specializing in both specialty and generic medicines. As of Q2 2024, the company is held by 68 hedge funds, up from 58 in the previous quarter, reflecting growing institutional interest. Teva recently reported strong financial results, surpassing earnings expectations with a non-GAAP EPS of $0.61 against an anticipated $0.57.
The company’s Q2 2024 revenue increased to $4.2 billion, representing 11% year-over-year growth. This robust performance was driven by Teva’s effective execution of its growth strategy, focusing on its four key pillars: delivering on growth engines, stepping up innovation, sustaining its generics powerhouse, and optimizing its business. The adjusted EBITDA for the quarter stood at $1.2 billion, reflecting a 4% rise, while non-GAAP EPS increased by 9%. The solid earnings performance has led Teva to raise its full-year guidance across revenue, EBITDA, and EPS, which is a positive indicator of its financial health.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) revenue growth was broad-based, with all business segments contributing. AUSTEDO, a leading product for the company, recorded 32% revenue growth, generating $407 million. Driven by higher demand and successful product extensions, AUSTEDO’s momentum enabled Teva to increase its annual revenue target for the drug from $1.5 billion to $1.6 billion. AJOVY, another key drug, grew 12% in the European and international markets, reflecting the strength of the company’s innovative portfolio.
The generics segment, a cornerstone of Teva Pharmaceutical Industries Limited (NYSE:TEVA) business, saw a remarkable 14% growth, underscoring its competitive positioning in this space. This performance was supported by new product launches, especially the introduction of SIMLANDI, Teva Pharmaceutical Industries Limited (NYSE:TEVA) biosimilar to Humira, which has gained strong traction since its launch. Additionally, the approval of a biosimilar to Stelara, set for a February 2025 release, adds to Teva Pharmaceutical Industries Limited (NYSE:TEVA) future revenue potential.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) expanding pipeline, which includes promising candidates like Olanzapine and anti-TL1A, indicates a strong outlook for continued innovation and market share gains. With its strategic focus and strong financials, Teva Pharmaceutical Industries Limited (NYSE:TEVA) is well-positioned to deliver sustained value to shareholders, making it one of the best stocks under $50 to invest in now.
Sound Shore Management made the following comment about Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its Q3 2023 investor letter:
“Away from power, drug maker Teva Pharmaceutical Industries Limited (NYSE:TEVA), a new holding, also performed well during the quarter. Teva develops, manufactures and markets generic and specialty drugs focused on neurological and respiratory diseases, as well as oncology. Following a period of poor capital allocation decisions in prior years, we were able to invest at a very attractive valuation. We now believe management has positioned the company for renewed growth, driven by its most promising branded drug pipeline in years. The investment is off to a good start and the stock gained after second quarter results topped consensus.”
