<p>Teva Pharmaceuticals, a U.S. affiliate of <strong>Teva Pharmaceutical Industries Ltd</strong>. (NYSE:TEVA), on Wednesday agreed to acquire <strong>Emalex Biosciences</strong>, including its lead asset, ecopipam.</p>



<h2>Teva To Acquire Emalex, Expanding Late-Stage Pipeline</h2>



<p>Teva will pay $700 million, and Emalex’s shareholders will be eligible to receive up to $200 million based on future commercial milestones and royalties on global net sales of ecopipam, subject to regulatory approval. </p>



<p>“This is a prime example of our Pivot to Growth strategy in action, advancing focused, capital-efficient agreements that expand our late-stage innovative pipeline and commercial portfolio,” said Teva CEO <strong>Richard Francis</strong>. </p>



<p>The transaction is currently anticipated to close by the third quarter of 2026.</p>



<p>Teva will fund the upfront payment using cash on hand. The company intends to mitigate the near-term margin dilutive impact of this acquisition and remains on track to meet its 2027 financial targets. </p>



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<h2>First-Quarter Earnings Beat Expectations</h2>



<p>Teva reported first-quarter adjusted earnings of 53 cents, beating the consensus of 48 cents.</p>



<p>Sales increased 2% (-3% in local currency) to $3.98 billion, beating the Wall Street consensus of $3.81 billion.</p>



<p>The generic drug makers‘ key brands delivered strong performance, with Austedo, Ajovy, and Uzedy revenues collectively growing by 41% year over year in local currency to $838 million.</p>



<p>Based on the 2026 Outlook, the company said these products are expected to generate an annual 4-year compound growth rate of around 38% and comprise around 21% of Teva’s total revenues.</p>



<h2>Margin Targets And Cost Savings Plan</h2>



<p>Teva reaffirms its fiscal 2026 adjusted earnings of $2.57-$2.77 per share versus the consensus of $2.67.</p>



<p>The company also reiterated its fiscal 2026 sales guidance of $16.4 billion-$16.8 billion compared to the consensus of $16.57 billion.</p>



<p>It expects to achieve 30% non-GAAP operating income margin and is on track to deliver around $700 million of net savings by 2027.</p>



<h2>Share Buyback Plan Under Consideration</h2>



<p>Teva’s board instructed management to plan for a share repurchase program. </p>



<p>Execution will be subject to certain factors, such as market conditions, share price, and other opportunities to invest capital for growth in alignment with Teva’s Pivot to Growth strategy.</p>



<p><strong>TEVA Stock Price Activity:</strong> Teva shares were up 11.4% at $35.14 at the time of publication on Wednesday, according to Benzinga Pro data.</p>



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<p><em>Photo: Shutterstock</em></p>

TEVA

TELO

<p>Teva Pharmaceuticals plans to acquire Emalex Biosciences for $700 million, enhancing its late-stage pipeline. The deal, expected to close by Q3 2026, aligns with Teva's growth strategy. Teva reported Q1 earnings of 53 cents per share, surpassing expectations, with sales of $3.98 billion. The company maintains its 2026 outlook, targeting adjusted earnings of $2.57-$2.77 per share and sales of $16.4-$16.8 billion. A share buyback program is under consideration, contingent on market conditions. Teva's stock rose 11.4% to $35.14 following the news.</p>

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Teva Signals Confidence With $700 Million Pipeline Push, Buyback Plan