Billionaire Larry Robbins’ 10 Stock Picks with Huge Upside Potential

8. Teva Pharmaceutical Industries Ltd. (NYSE:TEVA)

Glenview Capital’s Stake: $186.38 million

Number of Hedge Fund Holders: 72

Average Upside Potential as of May 8: 27.84%

Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) develops, manufactures, markets, and distributes generic and other medicines and biopharmaceutical products. It offers generic medicines in various dosage forms, such as tablets, capsules, injectables, inhalants, liquids, transdermal patches, ointments, and creams. It focuses on the central nervous system, respiratory, and oncology areas.

The company has a focus on AUSTEDO, which is a prescription medicine that is used to treat involuntary movements caused by tardive dyskinesia and Huntington’s disease. Revenue for AUSTEDO was up 34% in 2024 and reached ~$1.7 billion. In the US, AUSTEDO generated $1.642 billion in revenue, which marked an improvement of 34% in TRx (total prescriptions).

Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) is confident in AUSTEDO’s success and projects revenues between $1.9 and ~$2 billion for 2025. This sentiment comes from the unmet medical need in tardive dyskinesia, where only 6% of the 800,000 patients are currently on treatment.

Sound Shore Management stated the following regarding Teva Pharmaceutical Industries Limited (NYSE:TEVA) in its Q4 2024 investor letter:

“Teva Pharmaceutical Industries Limited (NYSE:TEVA): Traditionally known as a generic drug company, Teva has a growing branded drug business and a promising pipeline. Following a period of poor capital allocation decisions by prior management teams, we were able to invest at a very attractive 4 times earnings and with a 20%+ free cash flow yield. New leadership has focused on execution and pipeline development, leading to upward inflection in margins and positive clinical trial results. Teva remains remarkably cheap, trading at a significant discount to its intrinsic value. (Please see our 2Q 2024 letter for a more in-depth review of Teva.)”