After a multi-year slump, Teva Pharmaceutical Industries Limited (TEVA +3.65%) is on a roll. Shares of the Israel-based drugmaker have soared more than 130% over the last 12 months. Could Teva’s momentum continue? Wall Street thinks so.
Twelve of the 15 analysts surveyed by S&P Global (SPGI +1.32%) in April rated the pharmaceutical stock as a “buy” or “strong buy.” There are three specific catalysts that could send Teva stock to $40 — and perhaps beyond.
Image source: Getty Images.
1. Olanzapine approval
Roughly three months ago, the U.S. Food and Drug Administration (FDA) accepted Teva’s New Drug Application (NDA) for olanzapine extended-release injectable suspension (TEV-‘749) for the treatment of schizophrenia in adults. An approval decision is expected later this year.
Evercore ISI (NYSE: EVR) analyst Umer Raffat views the potential approval of olanzapine as Teva’s “most meaningful catalyst.” I think that Raffat is right.
Although olanzapine is already one of the most commonly prescribed antipsychotics for treating schizophrenia, there are no long-acting formulations of the drug for which the FDA doesn’t require a Risk Evaluation and Mitigation Strategy (REMS). Under a REMS, the drug must be administered in a certified facility. Patients must also be monitored for three hours after the injection.
Teva’s long-acting olanzapine formulation, which the company doesn’t expect to require a REMS, should significantly increase treatment adherence. Olanzapine and Uzedy, another long-acting drug marketed by Teva for treating schizophrenia and bipolar disorder, could together achieve peak annual sales of more than $2 billion.
2. Specialty drug momentum
Another potential catalyst for Teva is the acceleration of commercial momentum for its specialty drugs. Austedo ranks as the most important member of this group. The drug is approved as a treatment for tardive dyskinesia (TD) and Huntington’s disease chorea (involuntary, jerky muscle movements).
Austedo generated sales of $2.26 billion in 2025, a 34% year-over-year increase from 2024. Teva expects the drug to rake in between $2.4 billion and $2.55 billion this year.
Migraine therapy Ajovy and Uzedy are also key parts of Teva’s specialty drug success. Ajovy’s sales jumped 30% year over year in 2025 to $673 million. Uzedy’s sales soared 63% to $191 million.
Teva Pharmaceutical Industries
Today’s Change
(3.65%) $1.14
Current Price
$32.40
Key Data Points
Market Cap
$38B
Day’s Range
$31.27 – $32.81
52wk Range
$13.04 – $37.34
Volume
4.5M
Avg Vol
7.8M
Gross Margin
51.82%
3. Biosimilar boom
We can’t overlook Teva’s biosimilar boom. The company expects to launch six new biosimilars in 2026 and 2027.
Teva could soon battle Amgen (AMGN +1.69%) with new biosimilars to bone disease drugs Prolia and Xgeva. It could threaten Johnson & Johnson (JNJ 0.15%) in the autoimmune disease market with Simponi and Simponi Aria biosimilars. Teva could also soon secure approval for a biosimilar to Regeneron’s (REGN +0.61%) eye disease drug Eylea.
Jefferies (JEF +3.29%) thinks 2026 will be a pivotal year for Teva to convince investors that its research and development pipeline can deliver. However, Teva has more biosimilars on the way in 2028 and later. The company now boasts the biopharmaceutical industry’s second-largest biosimilar portfolio.
What could derail Teva’s rise?
These three catalysts might just propel Teva to $40 or higher in the near future. But what could detail the stock’s rise?
A stock market crash would likely drag Tesla down in its wake. Major pipeline or regulatory setbacks could bring the stock’s momentum to a screeching halt. Slowing Austedo sales would probably do the trick as well.
The good news is that Teva’s pipeline is de-risked to some extent, with several late-stage programs. And thanks to a forward earnings multiple of only 11.7, Teva is practically a value stock.
I wouldn’t bet the farm on Teva’s share price reaching $40 within the next 12 months. However, I wouldn’t bet against it happening, either.