Teva Launches New “Pivot to Growth” Strategy

• Return to growth by accelerating a strong innovative medicines portfolio
• Expand innovative pipeline and focus on core therapeutic areas with first-in-class and best-in-class opportunities
• Sustain generics powerhouse based on high-value and complex products
• Focus the business on areas with the greatest potential for growth and patient impact

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA), today announced a new strategic framework with four main pillars to position the Company for a new era of growth. This strategy aims to bolster the Company’s strong commercial portfolio with AUSTEDO^®, AJOVY^®, UZEDY^TM and biosimilars, amplify its innovative pipeline, sustain its generics powerhouse and focus the business. These four pillars are expected to deliver enhanced value and create a greater impact for patients.

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Teva’s President and Chief Executive Officer, Richard Francis, and additional members of Teva’s executive management team will provide a detailed overview of the Company’s new strategy during a live webcast today, May 18, 2023 at 12:00 p.m. ET. The live webcast of the event and presentation materials will be available on Teva's website here.

“Our new strategy is built on four key pillars to deliver short- and long-term growth from our commercial portfolio and biosimilars, innovative pipeline, generics powerhouse and focused capital allocation,” said Richard Francis, President and CEO, Teva. “With our Pivot to Growth strategy, I am confident we will gain momentum as a stronger, bolder and simpler organization.”

Deliver on Growth Engines

Teva expects to return to growth in the short term by accelerating its strong innovative portfolio and delivering on its promising biosimilars pipeline.

Teva expects to achieve annual revenues of more than $2.5 billion by 2027 for AUSTEDO, across its indications by addressing the unmet needs of a significantly under-diagnosed patient population and by expanding its coverage in key geographies. With UZEDY, the Company has an opportunity to reach a population of more than 600,000 patients living with schizophrenia with a best-in-class, differentiated therapy profile. Teva is additionally well-positioned to capitalize on its late-stage pipeline of biosimilars with 7 products in late-stage development and/or under regulatory review.

Step up Innovation

Teva aims to expand its innovative pipeline and focus on its core therapeutic areas of neuroscience, immunology and immuno-oncology, with assets aiming to be first-in-class and best-in-class.

The Company is already developing promising innovative assets, which will improve the standard of care for many patients worldwide and illustrate Teva’s unique capabilities in product formulation, complex devices and antibody engineering:

• Olanzapine LAI (44749) in phase 3 for schizophrenia has the potential to be a first long-acting olanzapine with favorable safety profile
• ICS/SABA (56248) in phase 3 for asthma is a de-risked fixed-dose addressing market needs and newest Asthma medical guidelines
• Anti-TL1A (48574) in phase 2 has the potential to be best-in-class for the underserved ulcerative colitis / Crohn’s disease market, as demonstrated by the data showcased by the Company.

Teva also sees promising application of its Attenukine technology – a new mechanism of action for high efficacy and low toxicity, for a broad array of immuno-oncology indications. The technology’s potential was demonstrated by the results of CD38-targeted Attenukine for multiple myeloma (out-licensed); and is being developed with a novel Anti-PD1-IL2 (56278) in oncology (in-house).

Additional assets within Teva’s promising innovative pipeline include:

• Anti-IL15 (53408) in Phase 1 for Celiac Disease
• Anti-PAR2 (56192) in Phase 1 in neuroscience
• Anle138b1 (56286) in Phase 1 for multiple system atrophy (MSA)

Teva also expects to more actively engage in business development opportunities to ensure pipeline-led, long-term growth.

Sustain Generics Powerhouse

Teva has a strong core generics business. The Company plans to continue to lead in generics and make it a sustainable powerhouse. Generics are the cornerstone of Teva’s success and heritage. Moving forward, the Company is committed to leveraging its unparalleled technological, development and clinical expertise to focus on a prioritized portfolio and pipeline of high-value generics opportunities. This would include mainly complex generics products, such as drug device combinations and long-acting injectables (LAIs).

Focus the Business

Teva has made decisive choices to focus its business and allocate resources on areas that show the greatest potential for growth and patient impact. Moving forward, the Company plans to increase its focus, optimize its businesses and its portfolio, and reallocate resources to fund growth. Teva is staying committed to continue serving its debt, and has reiterated its financial targets for 2027.

To join today's webcast please click here. Following the conclusion of the live webcast, a replay of the webcast will be available within 24 hours on Teva's website.

About Teva

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has been developing and producing medicines to improve people’s lives for more than a century. We are a global leader in generic and innovative medicines with a portfolio consisting of over 3,500 products in nearly every therapeutic area. Around 200 million people around the world take a Teva medicine every day and are served by one of the largest and most complex supply chains in the pharmaceutical industry. Along with our established presence in generics, we have significant innovative medicines research and operations supporting our growing portfolio of innovative medicines and biopharmaceutical products. Learn more at www.tevapharm.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on management’s current beliefs and expectations and are subject to substantial risks and uncertainties, both known and unknown, that could cause our future results, performance or achievements to differ significantly from that expressed or implied by such forward-looking statements. You can identify these forward-looking statements by the use of words such as “should,” “expect,” “anticipate,” “estimate,” “target,” “may,” “project,” “guidance,” “intend,” “plan,” “believe” and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. Important factors that could cause or contribute to such differences include risks relating to:

• our ability to successfully launch and execute our new strategy, including to expand our innovative medicines pipeline and profitably commercialize the innovative portfolio, whether organically or through business development; and to sustain and focus our portfolio of generics medicines;
• our ability to successfully compete in the marketplace, including: that we are substantially dependent on our generic products; concentration of our customer base and commercial alliances among our customers; delays in launches of new generic products; the increase in the number of competitors targeting generic opportunities and seeking U.S. market exclusivity for generic versions of significant products; our ability to develop and commercialize biopharmaceutical products; competition for our innovative medicines, including AUSTEDO, AJOVY and COPAXONE^®; our ability to achieve expected results from investments in our product pipeline; our ability to develop and commercialize additional pharmaceutical products; and the effectiveness of our patents and other measures to protect our intellectual property rights;
• our substantial indebtedness, which may limit our ability to incur additional indebtedness, engage in additional transactions or make new investments, may result in a further downgrade of our credit ratings; and our inability to raise debt or borrow funds in amounts or on terms that are favorable to us;
• our business and operations in general, including: the impact of global economic conditions and other macroeconomic developments and the governmental and societal responses thereto; the widespread outbreak of an illness or any other communicable disease, or any other public health crisis; effectiveness of our optimization efforts; our ability to attract, hire, integrate and retain highly skilled personnel; manufacturing or quality control problems; interruptions in our supply chain; disruptions of information technology systems; breaches of our data security; variations in intellectual property laws; challenges associated with conducting business globally, including political or economic instability, major hostilities or terrorism; costs and delays resulting from the extensive pharmaceutical regulation to which we are subject; the effects of reforms in healthcare regulation and reductions in pharmaceutical pricing, reimbursement and coverage; significant sales to a limited number of customers; our ability to successfully bid for suitable acquisition targets or licensing opportunities, or to consummate and integrate acquisitions; and our prospects and opportunities for growth if we sell assets;
• compliance, regulatory and litigation matters, including: failure to comply with complex legal and regulatory environments; increased legal and regulatory action in connection with public concern over the abuse of opioid medications and any delay in our ability to obtain sufficient participation of plaintiffs for the nationwide settlement of our opioid-related litigation in the United States; scrutiny from competition and pricing authorities around the world, including our ability to successfully defend against the U.S. Department of Justice criminal charges of Sherman Act violations; potential liability for intellectual property right infringement; product liability claims; failure to comply with complex Medicare and Medicaid reporting and payment obligations; compliance with anti-corruption, sanctions and trade control laws; environmental risks; and the impact of ESG issues;
• other financial and economic risks, including: our exposure to currency fluctuations and restrictions as well as credit risks; potential impairments of our long-lived assets; the impact of geopolitical conflicts including the ongoing conflict between Russia and Ukraine; potential significant increases in tax liabilities; and the effect on our overall effective tax rate of the termination or expiration of governmental programs or tax benefits, or of a change in our business;

and other factors discussed in this press release, in our Quarterly Report on Form 10-Q for the first quarter of 2023 and in our Annual Report on Form 10-K for the year ended December 31, 2022, including in the section captioned "Risk Factors.” Forward-looking statements speak only as of the date on which they are made, and we assume no obligation to update or revise any forward-looking statements or other information contained herein, whether as a result of new information, future events or otherwise. You are cautioned not to put undue reliance on these forward-looking statements.

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