Billionaire Stan Druckenmiller’s 5 Small and Mid-Cap Stock Picks with Huge Upside Potential

3. Teva Pharmaceutical Industries Limited (NYSE:TEVA)

Duquesne Capital’s Stake: $183 Million

Teva Pharmaceutical Industries Limited (NYSE:TEVA) first appeared in the 13F portfolio of Duquesne Capital back in the fourth quarter of 2013. This position comprised over 1.2 million shares and was sold off by late 2014. A new position was opened in the stock in the third quarter of 2024. This holding consisted of 1.4 million shares. The fund increased this position to more than 16.5 million shares by the third quarter of 2025. Filings for the fourth quarter of 2025, however, show that the fund has trimmed this holding by over 64% and owns 5.8 million shares in the pharma company.

A primary driver of hedge fund interest in Teva Pharmaceutical Industries Limited (NYSE:TEVA) stock has been Teva’s shift from low-margin generics to high-margin branded drugs. For the first time, Teva’s innovative brands—AUSTEDO (tardive dyskinesia), AJOVY (migraine), and UZEDY (schizophrenia)—collectively delivered over $1 billion in a single quarter (Q4 2025). AUSTEDO is now projected to hit $2.5 billion in annual revenue by 2027, ahead of previous management schedules. Institutional investors are also rewarding Teva for its aggressive entry into the biosimilar market, which offers higher barriers to entry than traditional generics. In March 2026, Teva received FDA approval for PONLIMSI, a biosimilar for Prolia, and saw its filing for a Xolair biosimilar accepted. Analysts estimate the schizophrenia treatment Olanzapine LAI represents a $3 billion peak sales opportunity.