Teva at Barclays Conference: Strategic Growth and Future Plans

On Tuesday, 11 March 2025, Teva Pharmaceuticals (NYSE: TEVA) presented its strategic vision at the Barclays 27th Annual Global Healthcare Conference. CEO Richard Francis outlined the company’s growth trajectory, emphasizing the success of its pivot to growth strategy initiated in 2023. While the company showcased significant progress, concerns were raised about meeting high EBITDA expectations.

Key Takeaways

• Teva has transitioned from revenue decline to eight consecutive quarters of growth.
• The company aims to achieve the high end of revenue targets for AUSTEDO and other products by 2025.
• Planned divestment of TAPI is expected to improve networking capital and avoid CapEx.
• Teva’s biosimilars business is focused on profitable growth with multiple launches anticipated.
• The company is insulated from potential U.S. tariffs due to its significant domestic manufacturing presence.

Financial Results

• Q4 2024 and 2025 Outlook:

- Positive feedback on turnaround progress.

- 2025 guidance suggests healthy top-line growth but raises concerns about EBITDA.

• Revenue Growth:

- Eight quarters of growth after five to six years of decline.

- Top-line growth at 9% and 6% respectively.

• Product Performance:

- AUSTEDO’s peak sales estimates increased to up to $2 billion.

- AJOVY sales projected to rise from $500 million to $600 million.

- YASETI ended the year with $170 million in sales.

• Gross Margin:

- Expected to grow by 150-250 basis points throughout the year.

• 2026 and 2027 EBITDA:

- Confidence in growth driven by innovative products and efficiency programs.

Operational Updates

• Strategy Execution:

- Focus on the four pillars: growth engine, innovation, generics powerhouse, and business focus.

• AUSTEDO and YASETI:

- Strong commercialization efforts and successful market launches.

• Generics Business:

- Stabilized and moving towards growth.

• TAPI Divestment:

- Aims to close in the first half of the year, offering capital allocation benefits.

• Value Acceleration Program:

- Enhancing manufacturing efficiency.

• Organizational Effectiveness:

- Optimizing capital allocation for innovation.

• Product Developments:

- Olanzapine submission planned for 2026, with high physician interest.

- DIVICU2 entering Phase III for IBD.

Future Outlook

• 2025 Priorities:

- Continue executing the growth strategy with improved outcomes.

• AUSTEDO Post-2027:

- Growth expected despite IRA impact due to low current market penetration.

• Biosimilars:

- Anticipate market evolution with opportunities for multiple launches.

• Tariff Impact:

- Insulation from tariffs due to significant U.S. manufacturing.

Q&A Highlights

• 2025 Guidance:

- Investors expected more, particularly regarding EBITDA.

• TAPI Divestment:

- Value extends beyond the sticker price, offering networking capital and CapEx benefits.

• AUSTEDO Growth:

- Only 15% market penetration with significant growth potential.

• Biosimilars Uptake:

- Focus on profitable growth.

Teva’s strategic insights and future plans were extensively discussed at the conference. For a detailed understanding, readers are encouraged to refer to the full transcript below.

Full transcript - Barclays 27th Annual Global Healthcare Conference:

Balaji Prasad, Senior Analyst, Barclays: Good morning, everyone. My name is Balaji Prasad. I’m the senior analyst for the specialty pharmaceuticals sector for Barclays. It is my privilege to kick off our spec pharma track with Teva Pharmaceuticals And I had a privilege of hosting Richard here on stage with me, CEO of Teva. Also do want to call out Eli Kelly, CFO of Teva, not on stage but on the front row, and Chris and Dave and Sanjeev from the Teva team, thank you all for joining us.

And to all our investors, thank you for joining us here in Miami. So starting with Teva, it’s been a great call for us over the last couple of years. The turnaround has been exceptional. And recently, the company also reported its Q4 and gave over its 2025 outlook. We saw a bit of sell off post this.

But in terms of the pipeline progress, in terms of the execution and true stabilization of the business, it has been a phenomenally impressive one. So I’d hand it over to Richard to start with some opening remarks with your recent Q4 earnings and your ’25 outlook and then dig into some questions.

Richard Francis, CEO, Teva Pharmaceuticals: Great. Well, Balaji, thank you for hosting us. I always appreciate it and thank you people for coming in or tuning in. So and thank you for your opening remarks. I mean, I think we probably don’t think about it as an impressive turnaround in Teva.

We just set out a strategy in 2023. It was a really clear pivot to growth, and we’ve been executing that relentlessly. And what I think is I’m really pleased with and I think has got traction is the fact that we have our strategy and our four pillars, deliver on our growth engine, step up innovation, create generics powerhouse and focus the business. I think everything you and I will talk about today or I’ll be talking with investors today relates back to one of those pillars clearly. So what we’ve achieved over two years in taking the company from five, six years of revenue decline to eight quarters of growth to growing the revenue in our innovative to accelerating the pipeline.

Obviously, the headlines are Dubiketuk, but olanzapine with no PDSS, bringing Yuceti to the market, ICS Saba now in the clinic and going well with acceleration there. Reframing what AUSTEDO can do from I think when we started this pivot to growth, I think some of your colleagues had it as $1,400,000,000 peak. And obviously, we have a range and a higher range this year of $2,000,000,000 dollars So I think what we’ve shown is this strategy, we’re focused on it, we execute it and we deliver. And our generics business, we’ve moved from decline to stabilizing to growth now. And then focus the business capital allocation.

We’re very, very thoughtful about capital allocation. And obviously, the TAPI divestment shows that we take action when we think about where should we apply capital to make sure we get the best return for investors over the long term. So I think we’ve executed a lot. There’s a lot more to come. So I think part of talking to you today is about reemphasizing why we have a lot of confidence, not just in 2025, but in the future as well.

Balaji Prasad, Senior Analyst, Barclays: Thank you, Richard. So a lot more to come. So I’ll pick on the last point. And as we look at two months into 2025, I’m already in March. But as you think about the year now, what are the key priorities for you?

And as you gave out the 2025 guidance, what are all the pushes and pulls that you’re thinking about in the guidance that you gave? Fairly healthy top line, I think was the EBITDA which was a matter of concern for investors, but lay that out for us.

Richard Francis, CEO, Teva Pharmaceuticals: Yes. No. And so look, excited about ’25 because we’re going to keep executing what we’ve executed for twenty four months, which when you I don’t think of necessarily as a turnaround, but when you’re reinvigorating a company, you need to have 36,000 people clear about what they have to do. And so when it comes to twenty five thousand, it is we do what we did in 2023 and 2024, and we just do it even better. It is quite it’s hard, but it’s pretty simple as that.

And so for me, the pushes and pulls are 25,000. So Aesthedra, I think we’ve continued to show that we are world class commercializing innovative products. And I think people doubted us in 2023 and we’ve just shown, I think now we’re really good. And we have a range of up to 2,000,000,000 with Aesthetics. I’m excited about what we can do there.

YASETI, I think we’ve also shown in a very difficult area in schizophrenia long acting that we can launch a product into a crowded area and we get real traction as you saw with us ending last year at $170,000,000 And so we’re excited about driving Yuceti. And so I think on the top line and then you throw in that AJOVY, which was people forgotten about, we did 500,000,000 Now we’re going to do $600,000,000 And then you think about submitting elanzapine to launch in 2026. I think we have a lot to do that. I’m excited about DUVICA2 hitting Phase III in IBD this year. I’m excited about announcing some more indications this year, which really reemphasizes we are a biopharma company.

We’re not just a generics company. We’re very proud of that. So I think there’s a lot of things that we’re excited about ’25. I think one of the interesting challenges and in a way, as much as it’s a tiny bit frustrating, I’m sort of pleased. In our guidance, people expected more for Teva.

And in a way, it’s been a long time since people expected more from Teva. And so as you say, our top line is pretty healthy. We’ve grown on a 9% and a 6% after five, six years of decline. So, okay, people expect more, I appreciate that. On the EBITDA, then we could talk a bit more about that.

But I think the pushes and pulls on the top line are around, are we going to hit the high end of Aestedo? Are we going to hit the high end of our innovative products? Are our new product launches going to come on time because we risk adjust our new product launches in generics because of timing uncertainty? And obviously around the biosimilar uptake and what that could be. So I think we have a lot of belief in our top line, but that’s what we have to keep executing.

I would also and it’s important to me emphasize is when you look at Teva, it’s important how you think about how we phase a year because our H2 is always bigger than our H1 and that’s been consistent in the two years I’ve been here. I think it’s important for eternity, but definitely since I’ve been here, Q1 is a reflexive is a, I suppose, a slower start to the year. And I just always remind people to take into account what’s happened in 2023 and 2024. We have strong years, but H2 and H1. And I’d also maybe emphasize that when people think about gross margin, that they also think about that as the gross margin grows throughout the year.

And even just to be specific on that, there’s 150 to two fifty basis points difference in Q1 versus other quarters going forward towards the end of the year. And it’s important to do that when modeling. But the direction of travel for ’25 is on the top line, I’m very pleased about, confident of because it goes down to execution again.

Balaji Prasad, Senior Analyst, Barclays: Got it. Maybe just looking beyond 2025 and continuing on the EBITDA part of the question, I think the other thing which is weighing on the mind of investors is generic travel made in 2026 and where that leaves you for your 2027 EBITDA guidance.

Richard Francis, CEO, Teva Pharmaceuticals: Yes. So look, I mean, let me and I’ll take a bit from the last question and this one, Blaaji. So in 2025, we’ve got those pushes and pulls on the top line which could get us to the higher end and I think that’s going to impact the EBITDA as well. And so I think we need as much as people are focused on that midpoint, I think there’s good opportunity for us to move towards the higher end of our guidance if we execute well. But the one everybody is now thinking about is what does ’26 have to look like with Revlimid, generics CLIF, which is a bit of an oxymoron, I suppose, but and then ’27.

So there’s three reasons why I and the team have high degree of confidence in ’27 and why we have high degree of confidence in ’26. First, I’ll start by saying in ’26, we will grow OPA as a percentage and we will grow EBITDA. Okay. So okay, 2026, we will grow EBITDA and obviously, we’ll grow EBITDA in 2027 and we’ll grow that as a percentage. So now how and why do we have confidence in that?

It’s based on three factors. One is revenue. Revenue of our innovative products getting traction. So Aesthedo, as you can see, we’ve consistently executed that. It finished in below 30% growth.

So we continue to show we can drive momentum. We have YASETI, we have AJOVY now with momentum and we’ve been launching olanzapine. So all of those I believe will continue to drive as well as our generic product launches as well as our biosimilars. So that helps us drive good revenue. And those are all good margins because the new product launches in generics and biosimilars as well as in Abitis.

The second one is our value added program value acceleration program, sorry. And this is around our manufacturing base, which is still significant, 50s plus sites. And this is where at Teva, we’ve never driven an efficiency program. We’ve closed sites, but we haven’t driven efficiency in a site. And when you think about what drives down cost of goods, it’s running a site very efficiently.

And so we put that program in place mid year of last year and that’s going to play out to 2027, probably more hit late twenty twenty six and 2027 just because of the what it takes to drive in efficiency in manufacturing. So that’s a big chunk of cost improvement. And then the final thing is an organizational effect in this program, which we launched at the start of this year, which is about understanding that Teva has been an accumulation of many companies over the years, but it’s never been set up to be a biopharmaceutical company. And where do we want to invest capital? We want to invest capital in innovation.

And so what choices do we need to make and how do we need to think about driving efficiency? So that’s going to create a not insignificant cost saving. So I come back to answer your question, why am I confident about growing EBITDA in ’26 and ’27? Well, the revenue, we have a clear line of sight on even taking up Revlimid and we can debate maybe plus or minus on that. The COGS improvement program and I’ve done that before, I know how to deliver that and we will deliver that.

And the cost, the organizational effectiveness program, we know how to deliver. And those are things those last two we absolutely control because we make decisions on it, investment or not investing. So when you put those three together, that’s what gives me clarity that we can grow the EBITDA of ’26 and ’27. Now, final thing I’ll say on that, just hoping that’s of interest to people is we’ll give more detail on that in Q1. So you can go through, break that down to make people understand that there’s more of the specificity around that.

But that’s why I think people can think about the EBITDA growing year on year to ’27 and being a still a hockey stick, which I’ve always said because of those big factors, but not being something that should be unknown.

Balaji Prasad, Senior Analyst, Barclays: Okay, great. I’m sure many investors will be happy to hear about the EBITDA trajectory in 2026 and probably take that out as a positive from here. At least the slope of the orchestral is going to be more gradual than the steep spike that we expected to see in 2027.

Richard Francis, CEO, Teva Pharmaceuticals: Yes. I mean, look, hopefully, what it shows is people the three elements. The last two we control. Right. And I think one thing people have learned of Teva in the last two years, we execute.

We can execute. So if we’re going to do something, we’ll execute. And so I think I’d like to think that gives people confidence in how they can model and how they can forecast.

Balaji Prasad, Senior Analyst, Barclays: Got it. So the other thing which is more near term and I think more market is definitely looking forward to is the potential news around divestment of Typee and when we expect to hear that. So where do you stand currently as it relates to buyers and timelines? And if you can give any kind of comments around the valuations around this business at all?

Richard Francis, CEO, Teva Pharmaceuticals: Yes. So, the aim is to close this still in the first half of this year. So, around valuations, obviously, because we’re deep in that, that’s not sure we can go into too much, but I’ll give you some framing to help. I think about this as sort of driving a few areas to think about the value of TAPI. One is the absolute number that we get and the cash and how that can be deployed and the benefit of that.

But there’s a second one, which is and there’s another two, which are not insignificant and very important for us, which is the improvement in networking capital we have. So as TAPI gets divested, networking capital is one. And then also the CapEx avoidance, which is also significant for TAPI. So you think about those and you go back to that fourth pillar of our Pivot to Growth strategy, which is focused capital allocation. The value of TAPI, which is a great business of divestment, it allows it to grow and really achieve some good market share in this $87,000,000,000 API market.

But for us, it allows us to really focus on being a biopharma company and making sure when it comes to networking capital, CapEx, general capital allocation, we keep applying it to the Aestetos, the Alansapines, the Dupekutuk, the IL-15s, the Emerald Salmons, which is going to drive mid to long term value over and above what we can achieve by keeping TAPI. So the value proposition, what I’m saying is bigger than just the sticker price. As much as that is that’s still important for us from a driving investment in the company and reducing debt, there is a longer term capital allocation advantage for the divestment.

Balaji Prasad, Senior Analyst, Barclays: Got it. Maybe shifting towards the business and the business side of things with Ostrado, I think your turnaround, especially on that has been remarkable. The focus on it and driving it to growth. But one thing which weighs on it definitely is, of course, the IRNA price negotiation and what the trajectory of the product is going to be post 2027 and the margin profile, especially. So how should investors think about this product post 2027?

Richard Francis, CEO, Teva Pharmaceuticals: So isn’t that great you’re asking that question? Because I mean, it’s probably at least I think it’s great that people are saying, okay, so $2,500,000,000 you’re not even asking about $2,500,000,000 in $27,000,000,000 which probably means you think we can still hit it with IRA, which I think is the right assumption. Because if you think about where we could end this year, the guidance could get us to $2,000,000,000 What does that mean we have to do in ’26? If we keep our trajectory, which we seem to be executing very well, was it be $27,000,000,000 She will now discount to the $2,500,000,000 which when we met two years ago, I wish I could replay that conversation back to you. But anyway, wasn’t going to be post ’27, it’s going to keep growing.

And let me tell you why. Even with the impact of the IRA, whatever that turns out to be, is because there’s only 15% of this market has been penetrated. Of eight hundred thousand people with tardive dyskinesia, hardly any of them on treatment. So the opportunity to keep growing this product into the years way beyond ’27 is significant. That’s what the other part is the opportunity to make sure patients get on the right dose and stay on it and adhere and comply.

There’s still big opportunity. And we’ve just started executing as people are excited about what we’ve done in two years. When I think about what we can achieve improving our programs, improving our patient support, improving the compliance, as well as getting more patients in the market, educating more physicians to

Balaji Prasad, Senior Analyst, Barclays: special side of things about UsurD, it’s been off to a great start and maybe kind of dissect for us what has enabled this performance that we have seen and as we think about going further. And in your comments, you said that this is a crowded market and that’s something that we are all cognizant of when we model the product. So how should we think about the uptake over in the medium to longer term too?

Richard Francis, CEO, Teva Pharmaceuticals: Yes. So look, I think this is another great example of when you said it was launched, I think there were two reasons to doubt it. One, Teva, can they really launch product into schizophrenia crowded market innovation? And two, it’s a crowded market, can it survive in that against some big players? I think what we’ve shown is once again going back to our commercial muscle, we are really good.

We’ve got a really highly capable team who’s dissecting what is a very complex market from a patient flow. Second thing is, Yucenis is a fantastic product. The differentiation of the product is clear. What are the whether it be a P filter range, whether it’s subcutaneous, it doesn’t have to be kept in the fridge. But probably the biggest is you can inject it and within eight to twenty four hours you get to therapeutic levels.

No other long acting has that. So when a physician sees a patient with an episode, you have to think, well, I need to either inject you, watch you or be as an inpatient and then give you other oral supplements. They don’t have that. So the product profile with our commercial execution has meant we’ve had we’ve navigated what is complex and we’ve got real traction and real excitement around this product. Now what I would say, you asked about what does that mean for you said it.

I think it means it has a very bright future. But what it means for olanzapine, we’re calling on exactly the same physicians with exactly the same technology with a product that is clearly differentiated from risperidone because those products are using different patient types. So we know the payers, we know the hospital formulary, we know the decision makers, we know the physicians, we know the nurse practitioners. So our ability to not only drive Yuceti, but also to have a good uptake of olanzapine, I think, is something to rethink about because that muscle can yet be applied to olanzapine and it will be stronger and stronger as we go on this year with Youssefidis. So I feel it just shows once again, we can execute launches really well.

We can drive innovation and we understand complex markets and we can navigate those very well.

Balaji Prasad, Senior Analyst, Barclays: Great. So let me bring Golancipin into the discussion then. I mean, again, we saw the data again, very compelling data. I think the key question seems to be really around the label now. What’s the label going to be?

And is there going to be a observation clause in the label? And so how do you think about this? And I mean extrapolate this to commercial success?

Richard Francis, CEO, Teva Pharmaceuticals: Yes. So look, obviously, we did talk to the FDA before we did our study. And so they agreed on the criteria needed to evaluate whether it had PDSS or not. So we think we’ve obviously we have no PDSS, so we think we’ve aligned what the FDA wants. Eric Hughes, my Head of R and D, always says you still don’t know what the FDA will do at the last minute.

But we think we have a very clean product. We have a good safety and tolerability profile. We have a good set of data. So we’re submitting that to the FDA this year. So I think we have a high degree of confidence that we fulfilled all the criteria.

So but we’ll have to wait and see because ultimately that’s fair decision.

Balaji Prasad, Senior Analyst, Barclays: Okay.

Richard Francis, CEO, Teva Pharmaceuticals: But what I can say the physician excitement is high because obviously we call on these physicians with Yuceti. They’ve seen the data and so they’re excited about elansapine coming to the market because that is their favored number one molecule to treat moderate to severe. So I think we’re very optimistic about it, but we’ll have to see what the FDA say.

Balaji Prasad, Senior Analyst, Barclays: Understood. And depending upon what the FDA says, can you lay out the scenario analysis, maybe what could be a realistic range for it in terms of market opportunity, assuming label being either way?

Richard Francis, CEO, Teva Pharmaceuticals: Yes. Look, I think there is no long acting or lansoprene that’s used of any volume. So I think the more we speak to physicians with Yuceti, the value of long acting and schizophrenia is huge because as people are aware is if you have an episode with schizophrenia when you’re on medication, that medication becomes less efficacious every episode you have. So you want to stop having episodes, episodes primarily are driven by lack of compliance. So you want to be on a long acting.

And so what we think with elansibene, because it’s used for the most severe schizophrenic patients, the need to have compliance is even higher. So our belief is there’s a real rationale to say on those patients you would adopt even more long acting patients. Now in the standard market, it’s thirteen percent of the schizophrenia market has moved thirteen percent, fourteen percent has moved to long acting. One could model that for olanzapine. I think that’s a significant market.

One could also argue it could be higher based on the fact that these are severe patients who need to be compliant. We’re working through that, but we think it’s a significant product. We’re obviously in research now with payers and physicians to understand really where this product could be placed. And we’re seeing a high degree of positivity around it because there’s a huge unmet need. These are the worst patients who need to be treated and need to be maintained.

So long acting is really needed.

Balaji Prasad, Senior Analyst, Barclays: Got it. Maybe one quick question on duvetutide. I think we have discussed that a lot recently. So you’re looking to initiate Phase III in 2H23, 2H25. Are there any kind of sturdation factors and points that influence the initiation of the clinical trials for Phase three?

And maybe beyond that, so how do you see the TL1A categories fitting in the treatment paradigm of IBDs?

Richard Francis, CEO, Teva Pharmaceuticals: Yes. So we will initiate the Phase III this year in IBD. So that will happen. We will also be announcing other indications for DIVICU2 with our partner Sanofi. So then to your final question, I think this is an exciting one.

How does TL1a, how does DIVIKITU fit into IBD? The more I look at this category, the more I think DIVIKITU can play a really significant role, primarily for two reasons, and they’re pretty basic reasons. It’s going to show, I believe, a high degree of efficacy and its safety and tolerability profile is excellent. And if you look at this category, there’s not really a product that has that combination. Some of them have have efficacy, some of them don’t have efficacy, some of them have black box, some of them have monitoring issues and so on.

I think we have a very good, safe and tolerable product. And you can see that from the ASPR study we did. You can see that from the study we’ve just completed already. So the data is significant. And I think throughout my time in the industry, efficacy with safety and tolerability together is really rare and in IBD it’s really needed because the cycling through because of lack of efficacy or tolerability or side effects is significant.

So I think difotetu can become a real cornerstone in the treatment of IBD. Now We’ve got to wait to see what the Phase III looks like, but I think we’re very positive and confident about what that could be.

Balaji Prasad, Senior Analyst, Barclays: Got it. I want to spend a quick minute on the biosimilars side of things. Again, probably something where we are not seeing as much information as the market would like to. But help us understand both the ramp of Simlanti in 2025, what are the dynamics here between the three entities involved. And then beyond Simlanti, also Celeste, I mean, recently launched this, this, how should we factor this into our thoughts and what is the cadence going to be for 2025 and beyond?

Richard Francis, CEO, Teva Pharmaceuticals: Yes. Look, I think I’ve often said, I think this is going to be a longer game in The U. S, not necessarily in Europe. Europe, it’s quick. You get great penetration.

You get good prices. And so for The U. S, it’s still evolving as a market. So I think it’s going to be slower. That said, I think you highlighted there’s different segments of the market.

There is the private label. There is the pharmacy channel. There is the buy and bill. I think they all have slightly different dynamics and slightly different uptakes. So I think the one thing we’re focused on is driving that business profitably.

So we’re not looking to drive big market share at low prices. We’re trying to build what we have already with our biosimilar businesses, sustainable business that helps drive our top line, but also our bottom line. I think we’re making good progress. I think it’s steady, but sure. But we’re not looking to create an inflection point by sacrificing price, because I think for us it’s about value creation in the medium to long term.

But I see that evolving. I think there’s opportunities both with the launch of STELARA, but also with the potential launch of SYMPATHY, the potential launch of PRILIA. So we have multiple launches this year, depending on the timelines, where there are slightly different dynamic, there’s a slightly different brand, there’s a slightly different channel. And I think that gives us opportunity to start to see how this could really play out. But as I always say, we’re in this for the long term.

It’s a portfolio play. It’s not any particular one. But that’s why I said some of the things that can move us to the high end of our guidance could be the slightly higher uptake of some of our biosimilars.

Balaji Prasad, Senior Analyst, Barclays: Got it. I know we just ran out of time, but I’ll put in one final question. I think one of the things that I’m flying into investors clearly as investors look for safety stocks in volatile times like what we have seen last couple of weeks, I think Tewa is one that I’ve been flying as one where the business is intact, really not exposed to any of these volatilities. And the question that I do get is around tariffs and what if like if you see more tariffs in the pharmaceutical side of things with China and then even Mexico probably less for you and potentially India, how insulated is the business from tariffs and any impact on supply chain?

Richard Francis, CEO, Teva Pharmaceuticals: Yes. So I mean, it’s obviously a topical question right now. I think what I would say is one in 14 scripts in The United States is a Teva script. We are a massive supplier of pharmaceutical medicines. And one would argue very, very cost effective pharmaceutical medicines to The U.

S. Market, which helps underpin the healthcare system. Of that, around 40%, forty five % are actually manufactured in The U. S. So we have a significant manufacturing and volume presence in The United States.

Outside of that, it tends to be manufactured in Europe. But once again, these are cost effective medicines. So I think out of real volume, which adds real value to I think The U. S. Healthcare system.

So I think to do the volume we have and we supply, I think that’s a pretty good balance. And obviously we do supply not insignificant amount from Israel as well. So for us, I think just because the value proposition we bring to The U. S. Healthcare system, I think that would be taken to account in any discussions and the fact that we have such a big footprint and a big amount of volume that’s manufactured already in The U.

S. But we’re sort of watching that closely to understand what that could look like.

Balaji Prasad, Senior Analyst, Barclays: Okay, great. That’s a good point to leave this discussion at. Richard, thank you so much for joining us and for sharing your thoughts. And I wish you and your team a very productive conference.

Richard Francis, CEO, Teva Pharmaceuticals: Thank

Balaji Prasad, Senior Analyst, Barclays: you. We likewise.

Richard Francis, CEO, Teva Pharmaceuticals: Thanks for having me.

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